ANNUAL

REPORT
2020

Dhaka Electric Supply Company Limited

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 Table of Contents
Table of Contents

About Us 05
Footsteps toward progress 07
Award and Recognition 08
Products and Services 10
Corporate Information 11
Service Centre & Vending Station 12
Technical and Commercial Highlights 14
Notice of AGM 15
Vision and Mission 18
Directors’ Profile 19
Managment 25
Chairman’s Message 28
Managment Discussion and Analysis 30
Declaration by CEO and CFO 36
Audit Committe Report 37
Nomination and Remuneration Committee Report 39
Directors’ Report 41
Events Highlights 66
Moments with the shareholders 83
Audit Report and Financial Statements 85
Corporate Governance Compliance Certificate 130
Compliance with the Corporate Governance Code 131
Electricity Tariff Rates 137

ABOUT US
As a part of on-going Power Sector Reforms by
way of unbundling the power sector and
increasing efficiency in the area of generation,
transmission and distribution, Dhaka Electric
Supply Co. Ltd. (DESCO) was created as a
distribution company in November 1996 under the
Companies Act 1994 as a Public Limited Company
with an Authorized Capital of Tk. 5.00 billion.
However, the operational activities of DESCO at
field level commenced on September 24, 1998 by
taking over of the electric distribution system of
Mirpur area from erstwhile Dhaka Electric Supply
Authority (DESA). During inception consumer
strength was 71,161 and a load demand was 90
MW. In the subsequent years of successful
operation and better performance, the operational
area of DESCO was expanded through inclusion of
Gulshan Circle in April, 2003 and Tongi Pourashava
Area in March, 2007.
BRIEF HISTORY
The electricity supply industry in South Asia was
started with the commissioning of the first power
station in the 1890s. The first effort to structure a
legal framework for the industry came in 1910 with
the enactment of the Indian Electricity Act, 1910. In
1947, at the time of independence of India &
Pakistan, the installed generating capacity in the
then East Pakistan was only 21 MW.
ANNUAL REPORT 2020
In an effort to expeditiously augment generation
capacity to feed a developing economy, the then
Government of Pakistan issued an ordinance in
1959 creating the East Pakistan Water and Power
Development Authority (EPWAPDA). Shortly after
the creation of an independent Bangladesh, in
1972, the first Government of Bangladesh, in an
effort to speed up the investment in the sector
issued an Ordinance creating the Bangladesh
Power Development Board (BPDB) as the
successor organization of the power side of
EPWAPDA.
In order to intensify the pace of rural
electrification, the Government issued an
ordinance in 1977 establishing the Rural
Electrification Board (REB). In 1990, another
ordinance was issued, which was subsequently
enacted as an Act transferring the 132 KV, 33 KV
Transmission and distribution system in the
Greater Dhaka Area including the Metropolitan
City to a newly created Government agency called
the Dhaka Electric supply Authority (DESA).
Although several ordinances amending the
Electricity Act, 1910 had been promulgated, none of
them addressed issues involving the commercial
nature of the sector, which continued to be
treated as an extension of the Government
providing social goods for the people. From 1986
onwards, the commercial performance of the
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ANNUAL REPORT 2020
BPDB deteriorated and during 1991, BPDB’s
average gross systems loss was about 42 percent
and accounts receivables in excess of 6.5 months
of billing.
As part of the "Reforms-Funding" linkage agreed
between the development partners and the
Government, the implementation of Part (C) of the
Project has been linked to redefining the franchise
area of DESA and handing over of distribution
networks outside Metropolitan Dhaka City to PBSs
under REB, and formation of a corporatized Dhaka
Electric Supply Company Limited (DESCO) which will
initially take over part of the distribution network of
DESA and ultimately take over all its assets.
The formation of this company is seen as an
essential step towards “corporatization and
commercialization" of the sector and to reduce the
excessive inefficiency in the distribution network in
the capital. Due to paucity of financial resources
with the Government, there is an urgent need to
induct private sector participation in the power
sector. This participation will not be forthcoming
unless the financial inflow to the sector enables
the sector to earn a positive return. Since cash
inflows to the sector come only from distribution
agencies. There is an urgent need to improve their
efficiencies, if private sector investments are to be
attracted in any part of the power system.
The Dhaka area is the largest single distribution
territory consuming about 27 percent of the total
electricity sold in Bangladesh. DESA, which was
the distribution agency for the Dhaka area, had a
poor performance record with respect to system
losses and accounts receivables. Although the
performance had improved considerable since
1992 on account of intensive monitoring, there was
a limit to the gains that could be made and it was
felt that further progress could be achieved on a
sustainable basis only if there was a change in the
business environment, both external and internal
to the organization, which would enable
introduction of more sophisticated control and
management system and also organizational
accountability.
ADB observed that the prevailed organizational
arrangements including management structure,
employee compensation, delegation of authority,
conduct, discipline and appeal rules and promotion
policies were based on the civil service rules and
06
arrangements which was not well suited to the
functioning of a commercially oriented sector such
as power sector. It was, therefore, necessary to
create a new organization with its own rules and
regulation that would be more suited to the new
business environment.
The new company (DESCO) was created as a public
sector company, incorporated under the
Companies Act 1994, as a subsidiary of DESA.
However, shares of the company was offered to
the private sector, other power sector entities and
the general public to make the DESCO's
management more responsive to its consumers.
Service Territory
The company obtained license from Bangladesh
Energy Regulatory Commission (BERC) for
distribution of 1256 MW of Electricity at the area
bounded by (i) Balu River including Purbachal New
Town in the East (ii) Turag and Balu River including
Tongi Pourashava in the North (iii) Turag River in
the West and (v) from eastern part of Amin Bazar
Bridge to Mirpur Road, Agargaon Road,
Agargaon-Old Airport link Road, New Airport Road,
Mymensing Road, Tongi Diversion Road, Mohakhali
Jheel, Rampura Jheel connected with Balu River in
the south. The total area of DESCO is
approximately 236 square kilometers. As per the
License, DESCO can receive power at 132kV & 33kV
voltage levels and distribute the power at 33kV,
11kV, 0.4kV & 0.23kV voltage level.
Shareholders
In 2006 we were listed with the Dhaka and
Chittagong Stock Exchanges. Government of
Peoples’ Republic of Bangladesh holds 67.63% of
the shares represented by Bangladesh Power
Development Board and abolished DESA, 23.75%
shares hold by the Institutional investors and rest
of the 8.62% shares owned by other shareholders.
Employees
More than 1,832 people directly employed and
around 1700 people indirectly employed
(outsourced) for the services of Commercial
Operation Support, Line and Equipment
Maintenance, Substation Maintenance, Office
Security and Office up keeping. It’s the people who
brings the progress of the company every day.
 ANNUAL REPORT 2020

Footsteps toward progress

1996 Inception of the Company

Takeover of Mirpur Circle and 1998
Commencement of Commercial
Operation

2003 Takeover of Gulshan Circle Establishment of Sales and 2004

Distribution Divisions

2005 Inauguration of Prepaid Company Listed in Dhaka And 2006

Metering System at Uttara Chittagong Stock Exchanges Ltd.

2007 Takeover of Tongi Pourashava System Loss rate reduced to single 2008
Area & Obtained Distribution digit Inauguration of e-Governance
License and Data Acquisition System

2010 Introduction of Online Application for 2012

Online Bill Payment System New Electric Connection

2014 Establishment of Inception of Smart Pre-Payment 2017

Live Payment Gateway Metering System

2018 ISO 9001:2015 Certification for

ISO 45001: 2018 Certification for 2020
Occupational Safety &
Quality Management System
Health Management System

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ANNUAL REPORT 2020

Award and Recognition

Certification of ISO 9001:2015 (Quality Management System) and Innovation Showcasing Award 2019 By Power Division,
ISO 45001:2018(occupational health and safety Management System) Ministry of Power, Energy and Mineral Resources.

Best Organization Award in 4th Best Stall Award in Power and Energy Innovation Showcasing Award 2018
Development Fair 2010 organized by Week 2018 Awarded by Ministry of Power, By Power Division, Ministry of Power,
Dhaka District Administation Energy and Mineral Resources Energy and Mineral Resources

08
 ANNUAL REPORT 2020

Recognition for 100 percent ADP Implimentation 2017-18 National Mobile Application Award 2016-Champion
By Power Division, Ministry of Power, (Business and e-commerce Category)
Energy and Mineral Resources Awarded by ICT Division, Ministry of Post and
Telecommunication in Bangladesh in Collaboration With
World Summit Mobile Award.

Best corporate award 2015 (Special Category) National Digital Innovation Award-2011 12th National Award for Best Published
Awarded by Institute of Cost and (e-Finance Category, Runner-up) Accounts and Reports-2011
Management Accountants of Awarded by Ministry of Science and ICT, (First Prize,Service Sector Category)
Bangladesh (ICMAB) Govt. of People’s Republic of Bangladesh Awarded by Institute of
and D-Net. Chartered Accountants of Bangladesh

09
ANNUAL REPORT 2020
PRODUCTS AND SERVICES
Post Paid Connections
230 Volt Single Phase (up to 7 kW load demand)
400 Volt Three Phase (0 Kw to 80 kW load demand)
11 Kilo Volt Medium Tension (50 Kw to less than 5
MW load demand)
33 Kilo Volt High Tension (5 MW to less than 30 MW
load demand)
Pre-Paid connections
230 Volt Single Phase (up to 7 kW load demand)
400 Volt Three Phase (above 0 kW to 80 kW load
demand)
Services
Smart metering consumers have been provided the
credit facility during the general holiday of COVID-19
global pandemic crisis situation.
400 no’s of POS machine has been introduced for
vending as well as the simplification of prepaid meter
recharging system.
Establishment of 24/7 Call Center Service (16120) for
DESCO consumers.
Providing New Electric Connection of Different Category
Load Extension of Existing Consumer
Load Clearance for bulk consumer
Line Extension
Customer requested shutdown
Disconnection and Re-connection
Transformer given on Rental basis
Supply of Electric Line Accessories
Electric Line and Substation Maintenance
Testing and Installation of Customers’ Meter
Feasibility Study for line extension
10
Inspection of Solar Panel
Tariff Change, Name and Address Change
Re-print of Electric Bill
Bill payment statements and Certificate Delivery
Prepaid Card issue and re-issue
Service Cable Change at Customer Premises
Customer Meter Change (with or without accessories)
Post Paid Bill Payment Services
Bill collection booths adjacent to the respective
sales and distribution division
Almost every branches of every bank within the
distribution territory of the Company
Online bill collection through Debit and Credit Cards
Payment through Mobile Banking (Like bKash,
Surecash, Rocket, Gpay, my Cash, M cash)
Bill payment through mobile phone operators
Bill payment through live payment gateway
On line payment through mobile apps
Pre-paid meter Recharge Service
Vending Station adjacent to the respective sales
and distribution division
Vending Station on the different branches of
different Bank
Payment through Mobile Banking (Like bKash,
Surecash, Rocket, Gpay, my Cash, M cash, T cash)
On line payment through mobile apps
Payment through POS (South East Bank Limited,
Dutch Bangla Bank Limited)
Payment through Internet Banking (Islami Bank
Limited)
 ANNUAL REPORT 2020

Corporate Information
Board of Directors Procurement Review Committee
Engineer Bikash Dewan -Chairman
Chairman Dr. S. Shahnawaz Ahmed -Member
Md. Rokon-ul-Hasan -Member
Mosammat Maksuda Khatun Mohammad Nazmul Abedin -Member
Directors Md. Saiful Islam -Member
Md. Atiqur Rahman -Secretary
Md. Kausar Ameer Ali
Engineer Bikash Dewan Management
Md. Zahurul Haque Md. Kausar Ameer Ali
Dr. S. Shahnawaz Ahmed Managing Director
Md. Rokon-ul-Hasan Md. Saiful Islam
Engr. Ataul Mahmud Executive Director (Finance & Accounts)
Md. Anisur Rahman Md. Abdullah Al Masud Chowdhury
Md. Anwarul Islam Executive Director (Human Resources)
Independent Directors Engr. A. K. M. Mostafa Kamal
Executive Director (Procurement)
Dr. Shah Md. Helal Uddin
Mohammad Nazmul Abedin Engr. Noor Mohammad
Executive Director (Operation)
Md. Saiful Islam
Engr. Jagodish Chandra Mandol
Company Secretary Executive Director (Engineering)
Md. Atiqur Rahman
Head of Internal Audit
Administrative Affairs Committee Md. Manhaj Uddin
Mosammat Maksuda Khatun -Chairman
Statutory Auditors
Md. Zahurul Haque -Member
Md. Kausar Ameer Ali -Member Rahman Mostafa Alam & Co.
Engineer Bikash Dewan -Member Chartered Accountants
Md. Anisur Rahman -Member Governance Auditors
Md. Atiqur Rahman -Secretary
Suraiya Parveen & Associates
Board Audit Committee Chartered Secretaries
Dr. Shah Md. Helal Uddin -Chairman Development Partners
Md. Saiful Islam -Member
Asian Development Bank (ADB)
Md. Anwarul Islam -Member
Asian Infrastructure Investment Bank (AIIB)
Md. Atiqur Rahman -Secretary
Japan International Co-operation Agency (JICA)
Nomination and Remuneration Committee
Registered Office
Mohammad Nazmul Abedin - Chairman Dhaka Electric Supply Company Limited
Dr. S. Shahnawaz Ahmed -Member 22/B Faruk Sarani, Nikunja-2, Khilkhet
Engr. Ataul Mahmud -Member Dhaka – 1229, Bangladesh
Md. Rokon-ul-Hasan -Member Tel +88 02 8900110-11, 8900220-23 (PABX),
Md. Atiqur Rahman -Secretary 02 8900330 (Direct), Fax +88 02 8900100
e-mail csdesco@desco.org.bd
www.desco.org.bd

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ANNUAL REPORT 2020

Care Line 16120

Service Centre & Vending Station
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13
ANNUAL REPORT 2020

Technical and Commercial Highlights

(For Last five years)

Technical

Particulars 2015-16 2016-17 2017-18 2018-19 2019-20

132/33 kV Grid Substations (Nos) 2 2 3 4 5
33/11 kV Sub-station (Nos) 32 34 35 39 44
Capacity of 33/11 kV Sub-Station (MVA) 1,420/1,988 1,500/2,100 1570/2198 1990/2786 2290/3206
Maximum Demand (MW) 861 934 911 1,069 1031
132 kV Underground Line (Ckm) - - - - 14.936
33kV Overhead Line (Ckm) 108.80 108.80 108.80 108.80 108.80
33kV Underground Line (Ckm) 348.89 417.95 435.83 457.587 568.637
11kV Overhead Line (km) 1321.66 1394.65 1,552.56 1,658.20 1,722.92
11kV Underground Line (km) 480.58 540.48 575.45 611.08 626.004
LT Line (km) 2033.24 2057.66 2104.05 2,172.06 2,192.86
Distribution Transformer (No.) 6,315 6,567 6,730 7,067 7,185

Commercial

Particulars 2015-16 2016-17 2017-18 2018-19 2019-20

Energy Import (MkWh) 4,795.12 4,980.05 5,247.84 5,604.447 5423.17
Energy Sales (MkWh) 4,410.203 4,619.28 4,870.87 5,205.718 5080.29
Energy Import (MTk) 28,956.565 30,523.25 32,782.25 35,560.777 35,100.36
Energy Sales (MTk.) 31,478.24 33,277.57 36,538.86 39,987.990 39,423.94
System Loss (%) 8.03 7.24 7.18 7.11 6.32
Collection Ratio (%) 101.34 100.62 100.74 99.55 98.60
C.I. Ratio (%) 93.21 93.33 93.51 92.47 92.37
Consumer Nos. 7,60,844 8,18,156 8,80,505 9,52,298 10,01,799
Receivable/Sales (%) 12.79 12.72 11.31 10.76 13.66

14
 Notice of the
24 Annual General
th

Meeting
ANNUAL REPORT 2020

Registered Office:
22/B Faruk Sarani,
Dhaka Electric Supply Company Limited Nikunja-2, Khilkhet,
ISO 9001:2015 & 45001:2018 Certified Dhaka-1229

Notice of the 24th

Annual General Meeting
This is for notification of all concerned that the 24th Annual General Meeting of Dhaka Electric Supply
Company Ltd will be held at Digital Platform on Saturday, January 09, 2021 at 10:00 am to transact
following business:
1. Consideration and adoption of the Directors’ Report and Audited Financial Statements of the
Company for the year ended June 30, 2020 together with the Auditors’ Report thereon.
2. Declaration of Dividend for the year ended June 30, 2020.
3. Election/re-election of Directors.
4. Appointment of Auditors (Statutory and Compliance) for the year 2020-2021 and fixation of their
remuneration.
5. Special Business:
Consider and pass following resolution as “Special Resolution”:
RESOLVED that clause III (C) 8 (v) of the Memorandum of Association of the Company be amended as under:
“The Authorized Shares Capital of the Company is only Tk. 2,000 (Taka Two Thousand) Crores divided
into 2,00,00,00,000 Two Hundred crores Ordinary shares of Tk 10.00 each. The Company has power, from
time to time to increase or reduce its capital and to divide the shares in the capital for the time being
into other classes and to attach thereto respectively such preferential, deferred qualified or other
special rights, privileges, conditions or restrictions, as may be determined by or in accordance with the
Articles of Association of the Company and to vary, modify or abrogate any such rights, privileges or
conditions or restrictions in such manner as may for the time being be permitted by the Articles of
Associations of the Company or the legislative provisions, for the time being in force in that behalf.”
Further RESOLVED that Article 8 of the Articles of Association of the Company be amended as under:
“The authorized capital of the Company shall be Tk. 2,000 (Two Thousand) crores divided into
200,00,00,000 (Two Hundred) crores ordinary shares of Tk. 10 (ten) each.”
Members of the company are requested to kindly attend/join the meeting.
By order of the Board
December 15, 2020

Md. Atiqur Rahman

Notes: Company Secretary
a) Shareholders whose names appear on the Depository Register on the ‘record date’ i.e. November 19,
2020 shall be eligible to Join the meeting;
b) A member entitled to attend and vote at the Annual General Meeting can appoint a proxy to attend
and on a poll to vote on his/her behalf. Proxy Form duly stamped must be send through email:
csdesco@desco.org.bd at least 48 (forty eight) hours before the time fixed for the meeting;
c) Shareholders may collect the annual report from registered office or collect from the website of the company;
d) To register in the AGM, please visit the following web page (The page will be active 72 hours before AGM).
https://desco.org.bd or http://desco24agm.digitalagmbd.net

16
 ANNUAL REPORT 2020

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“The Authorized Shares Capital of the Company is only Tk. 2,000 (Taka Two Thousand) Crores divided
into 2,00,00,00,000 Two Hundred crores Ordinary shares of Tk 10.00 each. The Company has power, from
time to time to increase or reduce its capital and to divide the shares in the capital for the time being
into other classes and to attach thereto respectively such preferential, deferred qualified or other
special rights, privileges, conditions or restrictions, as may be determined by or in accordance with the
Articles of Association of the Company and to vary, modify or abrogate any such rights, privileges or
conditions or restrictions in such manner as may for the time being be permitted by the Articles of
Associations of the Company or the legislative provisions, for the time being in force in that behalf.”
Further RESOLVED that Article 8 of the Articles of Association of the Company be amended as under:
The authorized capital of the Company shall be Tk. 2,000 (Two Thousand) crores divided into
200,00,00,000 (Two Hundred) crores ordinary shares of Tk. 10 (ten) each.
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https://desco.org.bd or http://desco24agm.digitalagmbd.net

17
ANNUAL REPORT 2020

Vision
To be an enabler of economic development and social
progress by providing safe, reliable and sustainable
electricity.

Mission
Bringing comfort to customers, supporting business
and commerce and building strong communities.
Achieving and maintaining the highest degree of
efficiency, reliability and responsiveness for variety of
customers.

Guiding Principles
Safety: Placing the safety of our communities, Customers and employee first;
Customer Focus: Providing superior service to help customers more effectively
manage their use of electricity;
Community Focus: Being an integral part of the communities in which we live,
work and serve;
Operational Excellence: Incorporating continuous improvement to deliver safe
and dependable electricity at affordable prices;
Performance Driven Culture: Fostering a strong values and performance based
culture designed to attract, develop and retain best talents.

Values
Integrity: Maintain honesty, transparency and strong moral principles in
all activities.
Respect: Admire the customers’ needs and provide service to them in a
way that suits best within the regulatory framework.
Innovation: Drive to discover new ways to turn ideas into tangible
reality. Relentless pursuit of technical excellence and willingness to
adopt state of art technology in quality power supply, energy
conservation and utilization of renewable energy.
Commitment to Sustainability: Always remain vigilant for growth and
prosperity with sustainability.

18
Directors’
Profile
 ANNUAL REPORT 2020

Mosammat Maksuda Khatun has been appointed as Director and

Chairman of DESCO Board on June 25, 2019. She is a senior
Bangladesh Civil Service officer, known and respected for her high
levels of honesty and integrity. Mrs. Maksuda belongs to the 7th
(1985) batch BCS of the administration cadre. She is presently
working as Additional Secretary (Admin), Power Division, Ministry of
Power, Energy & Mineral Resources, People's Republic of Bangladesh
and holds additional charge as Chief Innovation Officer and team
leader of APA team, Power Division.
At her early career life, Mrs. Maksuda worked at different levels of
field administration such as Assistant Commissioner and Executive
Directors’ Profile

Magistrate, Upazila Nirbahi Officer, Additional District Magistrate.

Her key responsibility was supervising the implementation of various schemes and policies of the
government as well as responding to emergencies such as natural disasters, major accidents and
coordinating relief activities. By leveraging the experience and expertise gained in the field
administration, she had successfully created positive impetus through her work at different
ministries in secretariat. Before taking the charge of Chairman, DESCO board, she had successfully
served as Chairman, WZPDCL Board and Board Director of EGCB. She was the founder chairman of
Bangladesh Smart Electric Company Limited (BSECO). Her vast experience in Power Division poised
with her successful participation in different skill enrichment program, short courses, seminars,
symposium arranged in Bangladesh and abroad, makes her a veteran in handling affairs of the
government, including framing, implementing and reviewing policies regarding overall power
sectors of Bangladesh.
In order to gain a solid base knowledge on power sector policy framing and management, she has
attended training program on ‘Management and Maintenance of Energy Sector' from University of
Fordham, USA and 'Electronic Government Procurement (e-GP) of energy sector’ from University of
Technology Sydney (UTS), Australia. To gain the state of the art knowledge on overall project
management, she has completed skill enrichment program on ‘Project Monitoring and Evaluation
at a renowned institution at Washington D.C. USA and subsequently on 'Result Based
Management and Performance Indicator Training' from an institute located at Boston, USA. Mrs.
Maksuda has successfully completed short courses on "Public Administration' and 'Professional
Development’ program on ‘Public Administration Capacity Building' from University of Malaya,
Malaysia, Asian Institute of Technology (AIT), Thailand and one Vietnam's institute. She has also
completed a professional training on 'Public Policy, Service delivery and Negotiations' from Duke
Centre for International Development (DCID) at DUKE University, USA.
Apart from attending all these training programs, Mrs. Maksuda has traveled Netherlands, Poland,
Norway, UK, France, Germany, India, Sri Lanka, Singapore, Switzerland, Italy, Spain, Japan,
Philippine, Dubai, China and Saudi Arabia to attend numerous seminars, symposium as a part of
her official duty.
Mrs. Khatun was born in a respected middle class family in Satkhira, Bangladesh. She did her-
schooling at Katia Govt. Primary School and finished her intermediate education at Govt. Girl's
College, Satkhira. She was one of the toppers (3rd) at HSC exam in Jashore Board. She completed
her Master of Arts, degree from Dhaka University in 1987 and followed it up with a Bachelor of Law
(L.L.B) from Rajshahi University.

20
 ANNUAL REPORT 2020

Md. Kausar Ameer Ali was appointed as Managing Director and

Director of DESCO Board on March 30, 2020. Before joining at DESCO,
Md. Kausar Ameer Ali served Bangladesh Power Development Board
(BPDB) as the General Manager (Commercial Operation). He completed
his graduation in Mechanical Engineering from Rajshahi University of
Engineering & Technology (RUET). He was born on March 12, 1961 in
Bogra. He is serving in the Power Sector more than 35 years. He
started his career in October 1984 in BPDB. He contributed in
establishing as a Holding Company, Operation and Maintainance
Works on 33KV, 11KV, 0.4KV Distribution Overhead Lines, Underground
Cables and 33/11KV Sub-station, Project Management and Risk

Directors’ Profile
Management. He has also experience in Electricity Tariff Management, Commercial Operation
Management, construction work for Bibiana-III 400MW Combined Cycle Power Plant
Project(unit-3), Greater Rajshahi Power Distribution Project(phase-II). He was implementing GIS
Mapping in BPDB’s Distribution Zones. Md. Kausar Ameer Ali participated in different professional
course at home and abroad like India, USA and Singapore.

Md. Zahurul Haque, Additional Secretary of the Government and

Member (Administration) of Bangladesh Power Development Board
(BPDB) is a Director of DESCO Board. He joined this board on January
25, 2017 when he was Member (Finance) of BPDB. He has completed his
Masters of Science Degree in Geography in 1988 from the University of
Dhaka. Under the NORAD Fellowship Program, he did his M. Phil. in
Development Economics from Norway. He started his illustrious career
in January 1991 in the BCS Administration Cadre. He joined BPDB as
Secretary on 18/11/2013, as Member (Finance) on 29/08/2016 and as
Member (Administration) on 03/03/2017. He was promoted as
Additional Secretary on 12/12/2017. Before joining BPDB, he was the
Deputy Commissioner and District Magistrate of the District of Narail. He has almost 30 years
rich and vast experience both in general and land administration, law and order situation and
power sector management. He has participated in a good number of local and foreign training.

Engineer Bikash Dewan was appointed as Director DESCO Board on

August 16, 2017. He is the Managing Director of Dhaka Power
Distribution Company Limited (DPDC). Before joining at DPDC he
served Bangladesh Power Development Board (BPDB) as the Chief
Engineer (Planning and Design). He completed his graduation in
Engineering from the former Bangladesh Institute of Technology,
Chittagong (BIT) which is currently known as Chittagong University of
Engineering and Technology (CUET). He was born on January 11, 1959,
in Rangamati. He has 37 years of experience in Power Sector.

21
 ANNUAL REPORT 2020

Dr. S. Shahnawaz Ahmed joined in DESCO Board on September 28,

2017. He was also Director of DESCO Board from 17/07/1997 to
01/02/2000. He is a Professor in Department of Electrical and
Electronic Engineering, Bangladesh University of Engineering &
Technology (BUET). He obtained Ph.D in Electrical Engineering (with
specialization in Power System Control) from University of
Manchester, England in 1987. He achieved M. Sc. Engg. and B.Sc. Engg.
in Electrical & Electronic Engineering from Bangladesh University of
Engineering & Technology (BUET) respectively in 1984 and 1982. He has
38 years of experience in Teaching, Research and Consultancy related
to Power Sector.
Directors’ Profile

Dr. Shah Md. Helal Uddin is an Independent Director of DESCO Board and
Chairman of the Audit Committee. He joined DESCO Board on August 08,
2019. Currently he is working as the Joint Secretary of Power Division,
Ministry of Power, Energy and Mineral Resources of the Government of
the People’s Republic of Bangladesh. He started his career as a member
of Bangladesh Civil Service (Economic) in 1998. Dr. Helal has wide
experience in the area of development policy, planning, administration
and management. He attended a good number of training at home and
abroad. He pursued academic excellence in diverse field ranging from
agriculture, food & nutrition, governance & public policy, macro-economic
analysis and development planning. He did Ph.D in Agricultural Economics
in 2014 from Bangabandhu Sheikh Mujibur Rahman Agricultural University, Gazipur, Bangladesh. He
has 23 years of exposure in development administration and project management.

Md. Rokon-ul-Hasan was appointed as Director DESCO Board on April

26, 2019. He is Deputy Secretary of Government of the People’s
Republic of Bangladesh. Now he is Private Secretary to the Hon’ble
State Minister, Ministry of Power, Energy and Mineral Resource. He
joined the Administration Cadre of Bangladesh Civil Service. He has
worked in different levels of field administration such as Assistant
Commissioner, Deputy Director (BPATC, GIU), Upzilla Nirbahi Officer
(UNO) and Director, Governance Innovation Unit (PMO). As a BCS
Administration Cadre Officer, he served in the field of administration
and different Ministries for more than 16 years. He obtained Masters in
Public Policy & Governance from North South University, Dhaka in 2011.
He also completed his B.Sc. in Electrical and Electronic Engineering from Bangladesh University
of Engineering and Technology (BUET).

22
 ANNUAL REPORT 2020

Mohammad Nazmul Abedin was appointed as Director DESCO Board

on September 29, 2020. He is Deputy Secretary of Government of the
People’s Republic of Bangladesh. He joined the Administration Cadre
of Bangladesh Civil Service. He has worked in different levels of field
administration such as Assistant Commissioner, Senior Assistant
Commissioner, Upzilla Nirbahi Officer (UNO) and Additional Deputy
Commissioner (Dhaka District). As a BCS Administration Cadre Officer,
he served in field administration and different Ministries for more than
19 years. He obtained his M.S. Degree in Local Governance from
Murdoch University, Perth, Australia in 2012 and M.A. Degree in
Governance and Development from BRAC University in 2008. He also

Directors’ Profile
completed his Honor’s and Masters Degree in International Relations from University of Dhaka.

Engr. Ataul Mahmud is Former Vice President (Service and Welfare) of

the Institute of Engineers, Bangladesh (IEB). He appointed in DESCO
Board on June 20, 2014. He is also Chairman of M & M Engineering Ltd.
and M & M Yarn Dyeing Mills Ltd. He has completed his Graduation in
Electrical and Electronics Engineering (EEE) from Bangladesh
University of Engineering & Technology (BUET) in 1997 and obtained
MBA Degree from Dhaka University in 2010.

Md. Anisur Rahman joined in DESCO Board on August 14, 2016. He is

holding the position of Managing Director, Winner Consultants Ltd. for
last six years. He is ex-cadet of Barishal Cadet College. He did his B.A
(1992) and M.A (1995) from Dhaka University. He was involved with
Bangladesh Students League since he was a student of the university.
Currently he is Assistant Secretary of Bangladesh Awami League
Central Sub-Committee.

23
 ANNUAL REPORT 2020

Md. Anwarul Islam, FCMA joined DESCO as a Director on August 28,

2017. He is holding the position of Managing Director, ARS Lube
Bangladesh Ltd. He has completed his Masters of Commerce in 1990
from the University of Dhaka. He is the Fellow & Faculty member of the
Institute of Cost & Management Accountants of Bangladesh. He has 29
years experience in corporate sector of Bangladesh.
Directors’ Profile

Md. Saiful Islam joined in DESCO Board on October 25, 2020. He is

holding the position of Chairman, Alluring Group for last eight years. He
did his B.S.S Honors in Political Science (2004) and M.S.S (2006) from
Dhaka University. Before joining DESCO Board as an Independent
Director, he had been working as an Independent Director in Jalalabad
Gas T. & D. system Ltd. and Pashchimanchal Gas Co. Ltd.

24
Management
 ANNUAL REPORT 2020

Md. Kausar Ameer Ali

Managing Director
Joined as Managing Director of the Company as well as ex-officio Director of
DESCO Board on March 30, 2020. He is also a nominated Director of Dhaka
Power Distribution Company Ltd (DPDC). He has obtained B.Sc. Engineering
degree in Mechanical Engineering from Rajshahi University of Engineering and
Technology (RUET). He was born on March 12, 1961 in Bogra. He is serving in
power sector more than 35 years. He started his career in October’1984 in
BPDB. He contributed in establishing as a Holding Company, Operation and
Maintainance Work on 33KV, 11KV, 0.4KV Distribution Overhead Lines, Underground Cables and
33/11KV Sub-station, Project Management and Risk Management. He also has experience in
Electricity Tariff Management, Commercial Operation Management, Construction work for Bibiana-III
400MW Combined Cycle Power Plant Project(unit-3), Greater Rajshahi Power Distribution
Project(phase-II). He was implementing GIS mapping in BPDB’s Distribution Zones. Md. Kausar Ameer
Ali participated in different professional course at home and abroad like India, USA and Singapore.
Management

Md. Saiful Islam

Executive Director, Finance & Accounts
Md. Saiful Islam is in current position on deputation since November 11, 2018.
He is an Additional Secretary of the Government of the People’s Republic of
Bangladesh. Prior to his joining in DESCO, he was the Director (Administration)
in Civil Aviation Authority of Bangladesh under Ministry of Civil Aviation &
Tourism. He joined Bangladesh Civil Service (Administration) Cadre in 1993. He
played important role in different capacity in Ministry of Planning, Ministry of
Public Administration, Ministry of Defence and Ministry of Education. He
worked as an UNO and Magistrate in various districts of Bangladesh. He obtained B.Sc Ag. (Honors)
from Bangladesh Agricultural University and Masters in Governance and Public Policy from
Bangladesh Civil Service College under Dhaka University. He also obtained Post Graduation Diploma
in Development and Planning from Planning Academy under Ministry of Planning. He attended many
training programs in country and abroad.

Md. Abdullah Al Masud Chowdhury

Executive Director, Administration and Human Resource
He joined as Executive Director (Administration & HR) of the Company on February
08, 2015. He is an Additional Secretary of the Government of the People’s Republic
of Bangladesh. Prior to his joining in DESCO, he was the Economic Counsellor of
Bangladesh Embassy in Thailand. He joined Bangladesh Civil Service (Economic
Cadre) in 1993. He played important role in different capacity in planning
commission of Planning Ministry, Ministry of Health and Family Welfare, World
Bank Funded National Nutrition program, Ministry of Power, Energy and Mineral
Resources, Economic Relation Division, United Nations Economic and Social Commission for Asia and the
Pacific (UNESCAP), Commercial Counsellor to Thailand and Cambodia. He has worked as the Bangladesh
Alternate Permanent Representative to the UNESCAP, Bangkok, Thailand from January 2010 to December
2014. He has also worked as the Board Director of Sylhet Gas Fields Ltd., Eastern Refinery Ltd. and
Maddhapara Granite Mining Company Ltd. He has total 27 years of work experience in home and abroad.
He has completed his Masters of Social Science in Economics from Dhaka University and Post Graduate
Diploma in Ecologically Sustainable Development from Murdoch University of Perth, Australia.

26
 ANNUAL REPORT 2020

Engr. A. K. M. Mostafa Kamal

Executive Director, Procurement
He joined this position on May 14, 2012 and before joining his current post he
was General Manager (Presently Chief Engineer) of the company. In 2003 he
joined in DESCO as Deputy General Manager (Presently Superintending
Engineer) and performed as head of different Sales and Distribution Division
of DESCO. Under his leadership Gulshan Sales and Distribution Division
achieved the Best Unit Award 2010 in Bidyut Saptaho Organized by Ministry of
Power, Energy & Mineral Resources. He also served as head of Administration,
Planning and Design Division of DESCO. He has 35 years of experience in Power Sector including 18
years of experience in Palli Bidyut Samity (PBS) of Narsindhi, Tangail, Jashore, Mymensingh and
Cumilla under Bangladesh Rural Electrification Board (REB). Before joining DESCO he was the General
Manager of Cumilla Palli Bidyut Samity-1. He completed different professional training at home and
abroad among those Advanced Professional training on Energy Technology in Germany for eight

Management
months was significant. He completed his B.Sc. in Engineering (Electrical and Electronics) from
Chittagong University of Engineering and Technology (CUET) (Formerly Chittagong Engineering
College/BIT Chittagong) in 1984. He is a fellow member of Institute of Engineers, Bangladesh (IEB).

Engr. Noor Mohammad

Executive Director, Operation
Joined his current position on February 03, 2015, he joined in DESCO on March 01,
2003 as Deputy General Manager (DGM). He worked as the Chief Engineer of the
company before being appointed in his current position. During his service tenure,
he worked as the Head of different Sales and Distribution Divisions, Head of
Administration, DGM (Zone), General Manager (Procurement & Store), General
Manager/Chief Engineer (Development and Project), Chief Engineer (S & D
Operation) and Additional Charge as Chief Engineer (Network Operation). He has 37
years of experience in Power Sector including 19 years of experience in Palli Bidyut Samity (PBS) of
Shatkhira, Bagerhat, Pabna, Jessore, Sirajgonj, Rangpur and Dhaka PalliBidyut Samity-2 under Bangladesh
Rural Electrification Board (REB). He completed various professional trainings at home and abroad. He
completed his B.Sc in Engineering (Electrical and Electronics) from Bangladesh University of Engineering and
Technology (BUET) in 1983. He is a life fellow member of the Institute of Engineers, Bangladesh (IEB).

Engr. Jagodish Chandra Mandol

Executive Director, Engineering
He Joined this Position on December 27, 2015. In 2003 he joined in DESCO as
Assistant Manager (System Operation) and before joining his current post he
was Superintending Engineer (SE) of the company. He took care of the
functions of Planning and Development, Head of Sales and Distribution
Divisions, Material Planning and Stores, Zonal Operation during his service
period in DESCO. He has 31 years experience out of which 27 years in power
sector, among these 17 years of experience in DESCO and 10 years of
experience in Palli Bidyut Samity (PBS) of Dhaka, Rangpur and Munshiganj under Bangladesh Rural
Electrification Board (REB). He completed different professional training in home and abroad. He
completed his B.Sc. in Engineering (Electrical and Electronics) from Chittagong University of
Engineering and Technology (CUET) (Formerly Bangladesh Institute of Technology, Chittagong) in
1987 and did his MBA from International Islamic University, Chittagong in 2006. He is a fellow member
of The Institution of Engineers, Bangladesh (IEB) and member of Bangladesh Computer Society.

27
ANNUAL REPORT 2020
Chairman’s Message
Dhaka Electric
Supply Company
Ltd. (DESCO) is one
of the pioneering
companies in
power sector which
is engaged to
supply power to
the northern part
of the capital and
its adjacent area.
Our efforts are
centered in better
customer service,
uninterrupted quality power supply and addition
of value to its different stakeholders.
Electricity is the main element of modern
civilization. We have a dream to become a
middle-income country by 2021 and to become a
high-income country by 2041. In order to achieve
that goal, we are working with the Government as
a partner for supplying of quality and
uninterrupted power to our customers. Now the
installed capacity of electricity generation of the
country exceeds 23.55 Thousand MW and around
98% of the population are under electricity service.
Bangladesh has 12.38 thousand circuit km
transmission line which may be expanded up to 37
thousand circuit km by 2041 and currently there
are 5.86 lac km of distribution line. Power Division,
Ministry of Power, Energy and Mineral Resources
prepared a Power System Master Plan 2016. It has
taken various programs to improve power
production situation. There are short-term,
mid-term and long-term planning which are also
entangled to achieve Sustainable Development
Goals (SDGs) set by United Nations.
During COVID-19 situation employees are not being
able to visit the electric meter in the consumer
premises for health safety concerns. Estimated
bills in that period create much consumers
dissatisfaction. DESCO undertakes various steps
to quickly resolve this problem. Around 1, 02,945
bills have been corrected/adjusted for that period.
To provide Electricity Service round the clock about
100 DESCO employees have been affected by
COVID-19 and a good number of them have to
hospitalized.
28
For better consumer services, DESCO undertakes a
lot of measures, like- 24/7 call center (16120), online
bill collection and payment system, bill payment of
pre-paid meter easily through vending station,
POS machine, mobile & apps. Moreover, BEFTN has
been introduced to pay suppliers/contractor’s bill
dividend and other related payments. New
connection in rapid & simplified ways, wheel chair
for senior citizen at customer care points,
encouraging the use of renewable energy through
a Net Metering System, lodging complaint,
comment through e-mail, social media and mobile
app. public hearing, service camp etc. are worth
mentioning.
The company continued its investment in
infrastructure development, improve system
stability, capacity building, Safety and Security of
people, materials and equipment and the system
as a whole. There are several projects for
construction of Grid Substations, Distribution
Substations, underground Grid Network,
renovation or up-gradation of Distribution Network,
installation of Supervisory Control and Data
Acquisition System (SCADA), modernization of Grid
Substations, Modernization of Metering System,
application of Geographical Information System,
development of human resources and adoption of
State of Art Information Technology etc.
Tariff of Electricity determines the profitability of
the company which is beyond our control. Retail
tariff of the electricity has been enhanced w.e.f.
01/03/2020. It plays an important role to enhance
the earning per share. We expect that this income
will prevail in upcoming financial year also.
The Board of Directors considers and approves
different business proposals and policies support
to ensure sustainable growth and protects the
interest of the company and its shareholders.
Our sincerest appreciation is extended to our
stakeholders and our people for their firm
commitment and dedication. Thank you all.
Mosammat Maksuda Khatun
Chairman, DESCO Board

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ANNUAL REPORT 2020

Management Discussion and Analysis

Dear Shareholder,
Thank you for your confidence on us. Our efforts are centered in transforming this company financialy viable
and more customer friendly organization. We have taken several projects to cater the future load demand
in consistent with the power generation growth. Upon successful completion of the projects, DESCO will be
able to provide power to all the customers in its area up to 2025. We are trying to make the services more
accessible through innovation and introduction of customer friendly smart pre-paid metering system. We
always encourage the use of information technology to ease our services for our customers. In this respect
we are using e-governance software since 2008. We also introduced web-based Store Management
Software for improving efficiency in store management. We also achieved ISO 9001:2015 certification for
quality management system and ISO 45001:2018 certification for Occupational health and safety
management systems of the company.
Accounting Policies and Estimation
The Financial statement have been prepared on historical cost convension in accordance with
International Financial Reporting Standads (IFRS), except otherwise mentioned, and are in compliance
with the relevant requirement of the Companies Act, 1994, the securities and exchange rules 1987 and
other applicable law and regulations. The details of the significant accounting policies are available in note
1 of the financial statements.
Analysis on Financial Results
In 2019-20 the Company generated Tk. 4005.81 crores in revenue which was 4,075.33 crores in last
Financial Year, representing negative growth of 1.70%, and generated net profit after tax of Tk.45.56 crore
which was Tk. 107.48 crore in last financial year, representing negative growth of 57.61%. In June 30, 2020,
number of customers was 10, 01,799. During the year the company added 45,819 customers. The growth
rate of customer is 4.79%. Energy sales as well as Energy purchase decreased due pandemic situation.
Comparative Analysis
The synergy of technical and commercial activities is reflected in the financial results of the Company year
to year as under:
Figures in Crore Taka
Particulars 2019-20 2018-19 2017-18 2016-17 2015-16
Revenue from Operations 4005.81 4,075.33 3,715.2 3,401.2 3,189.0
Cost of Sales 3654.76 3709.64 3,394.7 3,153.5 2,998.9
Gross Profit 351.06 363.37 320.4 247.7 190.1
Expenses (Operating, Administrative and employee) 254.50 227.68 (220.2) (218.9) (196.0)
Operating Profit/Loss 197.23 107.48 10.03 2.88 (0.59)
Financial Expenses 98.20 (76.07) (58.2) (47.3) (34.2)
Exchange Fluctuation (Gain/loss) (9.12) (15.96) (49.5) (29.5) 1.6
Non-Operating Income 100.67 93.94 75.3 71.3 98.5
Taxation 40.06 24.10 17.4 5.8 (15.4)
Net Profit for the year 45.56 107.48 50.4 17.6 44.6
Dividend 39.8 47.71 39.8 39.8 39.8
Un appropriated profit carried forward 868.67 873.61 803.8 794.6 795.1

30
 ANNUAL REPORT 2020
Risk and Concern Mitigation Plan
The management concern about the different aspect of risks in the company. They provide time to time
guidance of different risks issues. The main objectives of those guidance are: a) Protect company’s assets
and reputation; b) Protect the interest of the other stakeholders; c) Create and promote risk awareness
culture within the company; and d) Compliance with all legal guidance.
DESCO adopts following mechanisms to mitigate the risks: a) Internal control system; b) Control on
financial reporting; c) Internal audit; d) External audit; e) Budgetary control; and f) Adoption of operational
manual etc.
Financial Ratios
Financial ratios are indicators of financial strength/weakness of an organization. Some of these are
presented below to reflect DESCO’s financial position:

Financial Ratio 2019-20 2018-19 2017-18 2016-17 2015-16

Current Ratio 1.65:1 2.16:1 2.10:1 2.25:1 2.41
Quick Ratio 1.28:1 1.47:1 1.51:1 1.56:1 1.62
Debt Ratio 73.71 71.01 71.01 68.78 53:47
Accounts Receivable (Months Equivalent to Sales) 1.99 1.65 1.62 1.69 1.61
Gross Margin / Sales Ratio 8.90 9.17 8.81 7.49 6.08
Operating Margin / Sales Ratio 5.00 3.48 2.76 0.87 (0.19)
Net Income / Sales Ratio 1.16 2.77 1.39 0.53 1.43
Net Asset Value Per Share (Tk.) 46.76 46.23 40.13 37.78 38.89
Net Operating Cash Flow per share (Tk.) 11.10 6.40 7.64 5.98 8.65
Earnings Per Share (Tk.) 1.15 2.70 1.27 0.44 1.18

Financial Scenario of Bangladesh and the Globe

Bangladesh, a developing country with a market-based mixed economy, is one of the Next Eleven
emerging markets. Its per-capita income was US$ 2,173 in 2020, with a GDP of $ 348 billion. In the first
quarter of 2020, Bangladesh's was the world's seventh fastest growing economy with a rate of 7.5% real
GDP annual growth. Bangladesh has the third-largest South Asian economy (after India and Pakistan) and
the second-highest foreign-exchange reserves (after India). Major industries include textiles (2nd Ranked
in the world), pharmaceuticals, ship building, steel, electronics, energy, construction materials, chemicals,
ceramics, and food processing and leather goods. Bangladesh's largest trading partners are the European
Union, the United States, Japan, India, Australia, China and ASEAN. The economy is driven by strong
domestic demand.
Source: Wikipedia
Covid-19 Pandemic: World and Bangladesh
The world economy is under siege today due to the corona. The Great Depression is coming. It is feared
that the magnitude of the Great Depression could be worse than the Great Depression of 1920. The heads
of government of the world's largest and strongest economies have a clear black mark of concern on their
foreheads. This is as much about the risk of a Great Depression as it is about the number of Covid-19
victims and the resulting rise in mortality.
The governments of some countries, including the United States, have already announced large-scale
stimulus packages to offset economic losses. In line with the world, the Bangladesh government has also
announced a large incentive package about Tk. 95,000 crore. Besides, the government has announced an
incentive of Tk 5,000 crore in the agricultural sectors. We know that the three major sectors of
Bangladesh's economy are agriculture, industry and services. Although production in these sectors has

31
ANNUAL REPORT 2020
not declined immensely in the short run but we have to wait to see the long-run effect on in these sectors.
It is also hoped that the ongoing economic progress will continue with the sincere efforts of the
government and joint participation in the public-private sector.
Covid-19 Pandemic and DESCO
Bangladesh is managing the Covid-19 crisis efficiently with the bold leadership of our Honorable Prime
Minister Sheikh Hasina. Bangladesh is driving its economy in good pace where the rich countries are
suffering with depression. The economic losses have been most pronounced in the services sector. Apart
from buying and selling daily necessities and emergency services, the sector is largely blocked. All forms
of communication (road, rail, sea and air), commercial activities, tourism, hotels and restaurants, real
estate and all other services were completely closed during Covid-19 lock-down. As a result, the revenue
from electricity sales has declined by about Tk. 44 crore in this fiscal year as compared to the last year.
The category-based review shows that industrial electricity sales revenue declined by Tk. 56 crore and
commercial sales revenue declined by Tk. 64 crore whereas with the increase of 45,540 nos. of residential
customers, the sales revenue from domestic usage increased by Tk. 76 crore. It should be noted that the
lion's share of DESCO's profits come from industrial and commercial customers. For which DESCO's
operating profit and after-tax profit have dropped significantly compared to last year. In addition, the
implementation of several development projects funded by development partners has been delayed due
to the impact of Covid-19. DESCO’s Management has already taken several steps to address the damage
caused by the Covid-19 and it is hoped that this situation will be overcome. Power is very essential
element toward economic growth and DESCO played its proper role in the crisis moment.
Future Plan or Projection
We believe that our existence depends on the desire and satisfaction of our customers. We are confident
that we have the right strategy, people and focus on efficiency to ensure sustainable value for the
shareholders. We are committed to continue our activities focused in all four areas of growth, productivity,
efficiency and sustainability.
Gratitude
We are grateful to our customers and shareholders for their tremendous confidence on us. Guidance of
the Board of Directors was very effective in shaping the plan into success. We hope that the success we
have achieved shall continue in future.

Md. Kausar Ameer Ali

Managing Director

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 ANNUAL REPORT 2020

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gv‡bvbœq‡bi ¯^xK…wZ ¯^iƒc Avgiv AR©b K‡iwQ ISO 9001:2015 Ges ISO 45001:2018 mb` |
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†Kv¤úvwb AvBb 1994, wmwKDwiwUR GÛ G·‡PÄ iæjm 1987 Ges Ab¨vb¨ cÖ‡hvR¨ AvBb, wewa I bxwZgvjv
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Avw_©K djvd‡ji we‡kølYt
2019-20 A_© eQ‡i †Kv¤úvwb †gvU 4005.81 †KvwU UvKv ivR¯^ Avq K‡i‡Q hv weMZ A_© eQ‡i wQj 4075.33
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hv 2018-19 A_©eQ‡i wQj 107.48 †KvwU UvKv| A_©vr wbU gybvdvi cÖe„w× (57.61%)| 30 Ryb 2019 Zvwi‡L
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(†KvwU UvKvq)
weeiY 2019-20 2018-19 2017-18 2016-17 2015-16
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weµq e¨q 3654.76 3709.64 3394.7 3,153.5 2,998.9
†gvU gybvdv 351.06 363.37 320.4 247.7 190.1
†gvU e¨q (cwiPvjb e¨q e¨ZxZ) 254.50 227.07 (220.2) (218.9) (196.0)
cwiPvjbv gybvdv/‡jvKmvb 197.23 107.48 10.03 2.88 (0.59)
Avw_©K e¨q (98.20) (76.07) (58.2) (47.3) (34.2)
ˆe‡`wkK gy`ªv wewbgq RwbZ Avq/e¨q (9.12) (15.96) (49.5) (29.5) 1.6
Ab¨vb¨ Avq 100.67 93.94 75.3 71.3 98.5
AvqKi 40.06 24.10 17.4 5.8 (15.4)
bxU gybvdv 45.56 107.48 50.4 17.6 44.6
jf¨vsk 39.80 47.71 39.8 39.8 39.8
cywÄf~Z gybvdvi †Ri 868.67 870.83 803.8 794.6 795.1

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ANNUAL REPORT 2020
SzuwK e¨e¯’vcbvt
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AvBbMZ wb‡`©kbv h_vh_fv‡e AbymiY|
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wb‡gœ cÖ`k©b Kiv n‡jv|
Avw_©K AbycvZ 2019-20 2018-19 2017-18 2016-17 2015-16
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†We&U †iwkI 73.71 71.01 71.01 68.78 53:47
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A_©‰bwZK AMÖMwZ Ae¨vnZ _vK‡e|
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cwi‡lev¸wj e¨ZxZ GB LvZwU †ewkifvM †¶‡ÎB APj wQj| †KvwfW-19 jK-WvDb PjvKvjxb mKj ai‡Yi

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 ANNUAL REPORT 2020
†hvMv‡hv‡Mi (iv¯Ív, †ij, mgy`ª I AvKvk) evwYwR¨K Kvh©µg, ch©Ub, †nv‡Uj Ges †i‡¯Ívuiv, wi‡qj G‡÷U Ges
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wkí I evwYwR¨K MÖvnKM‡Yi KvQ †_‡K| d‡j MZ eQ‡ii Zyjbvq PjwZ eQ‡i †Wm‡Kvi cwiPvjb gybvdv Ges Ki
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cvjb K‡i _v‡K|
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e¨vcv‡i AvZ¥wek¦vmx| Avgiv mvgwMÖK Kg©KvÛ‡K 4wU welq A_©vr cÖe„w×, Drcv`bkxjZv, `¶Zv Ges aviY¶gZv
(Sustainability) †K›`ªxf~Z ivLvi wel‡q `…p cÖwZÁ|
K…ZÁZvt
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cwiKíbv cÖYq‡bi †¶‡Î †ev‡W©i g~j¨evb w`Kwb‡`©kbv Avgv‡`i mvdj¨‡K Z¡ivwš^Z K‡i‡Q| fwel¨‡ZI G mvdj¨
Avgiv Ae¨vnZ ivL‡Z cvi‡ev e‡j Avkv ivwL|

†gvt KvImvi Avgxi Avjx

e¨e¯’vcbv cwiPvjK, †Wm‡Kv|

35
ANNUAL REPORT 2020

36
Audit
Committee
Report
ANNUAL REPORT 2020
The Audit Committee of Dhaka Electric Supply
Company Ltd. (DESCO) operates within the
Corporate Governance Guidelines of Bangladesh
Securities and Exchange Commission and carries
oversight responsibilities. The Board of Directors
set out the overall Business Plan & formulates
policies that the Management is responsible for
implementation. The Audit Committee, on behalf of
the Board, strives to ensure effective
implementation of the processes and procedures
set out in the Business Plans and Policies. Audit
Committee also review the internal control regime
and compliance status of the company as a whole.
Functions of the Audit Committee
Main function of the Audit Committee is to
facilitate the Board in its oversight responsibilities.
In order to fulfill the responsibilities, among others,
main responsibilities of the Audit Committee are
as follows:
– Review adequacy of Internal Control System,
– Review Financial Reporting Process & Financial
Statements,
– Review Internal Audit Report & External Audit
Report (Management Report)
– Monitor Accounting Polices & Principles, Internal
Control Risk Management Process,
– Monitor compliance culture,
– Recommend appointment of Auditor,
– Review Draft Budget and Revised Budget.
– Compliance of rules and regulations, etc.
Composition of the Audit Committee
Current Audit Committee is comprised of -
1. Dr. Shah Md. Helal Uddin, Independent Director,
DESCO Board – Chairman
2. Md. Anwarul Islam, Director, DESCO Board –
Member
3. Md. Saiful Islam, Independent Director, DESCO
Board – Member
4. Engr. Md. Atiqur Rahman, Company Secretary,
DESCO – Secretary
Senior officials of the company attend the
Meetings on invitation.
38
Meetings of the Audit Committee
The Audit Committee had held 14 (fourteen)
meeting during the Financial Year ended on June
30, 2020.
During the year under review the Committee, inter
alia, focused on following activities (not an
exhaustive test):
Reviewed Draft Financial Statements and after
discussing with the External Auditors
recommended it to the Board for their
considerations.
Reviewed Quarterly Financial Statements of
the company and recommended its submission
to the shareholders as a statutory
requirement.
Reviewed significant Internal Audit findings and
advised corrective actions.
Reviewed Annual Budget and Revised Budget
and recommended for approval of the Board.
Recommendation of Financial Statements
The Audit Committee reviewed and examined the
Annual Financial Statements for the Financial Year
ended on 30 June 2020 prepared by the
Management and audited by the External Auditor
Rahman Mostafa Alam & Co., Chartered
Accountants, and recommended these to the
Board for consideration.
Acknowledgement
The Audit Committee expresses its sincere thanks
to the Members of the Board and the Management
of DESCO for their excellent support in carrying out
the duties and responsibilities of the committee
during the period under review.
Dr. Shah Md. Helal Uddin
Chairman, Audit Committee
 Nomination
and Remuneration
Committee
Report
ANNUAL REPORT 2020
The Nomination and Remuneration Committee the Board;
(NRC) of Dhaka Electric Supply Company Ltd. (ix) Identifying the company’s needs for
(DESCO) operates within the Corporate employees at different levels and
Governance guidelines of Bangladesh Securities determine their selection, transfer or
and Exchange Commission and carries oversight replacement and promotion criteria; and
responsibilities. The NRC shall assist the Board in
formulation of the nomination criteria or policy (X) Developing, recommending and reviewing
for determining qualifications, positive attributes, annually the company’s human resources
experiences and independence of directors and and training policies;
top level executive as well as a policy for formal Composition of the NRC
process of considering remuneration of directors,
NRC is comprised of -
top level executives.
1. Mohammad Nazmul Abedin - Chairman
Functions of the NRC
2. Dr. S. Shahnawaz Ahmed -Member
(i) Formulating the criteria for determining
qualifications, positive attributes and 3. Engr. Ataul Mahmud -Member
independence of a director and recommend 4. Md. Rokon-ul-Hasan -Member
a policy to the Board, relating to the
remuneration of the directors, top level 5. Md. Atiqur Rahman -Secretary
executive, considering the following: Senior officials of the company attend the
(ii) The level and composition of remuneration is Meetings on invitation.
reasonable and sufficient to attract, retain Meetings of the NRC
and motivate suitable directors to run the During the year The NRC had held 02 (two)
company successfully; meeting, focused on 1) Prepare a code of conduct
(iii) The relationship of remuneration to for the Chairman, Directors and Top-level
performance is clear and meets appropriate executives of the Company and 2) Remuneration
performance benchmarks; and of Board Directors.
(iv) Remuneration to directors, top level executive
involves a balance between fixed and
incentive pay reflecting short and long-term
performance objectives appropriate to the
working of the company and its goals;
(v) Recommend code of conduct for the Mohammad Nazmul Abedin
Chairperson of the Board, other board Chairman, NRC
members and Chief Executive Officer of the
company;
(vi) Devising a policy on Board’s diversity taking
into consideration age, gender, experience,
ethnicity, educational background and
nationality;
(vii) Identifying persons who are qualified to
become directors and who may be
appointed in top level executive position in
accordance with the criteria laid down, and
recommend their appointment and removal
to the Board;
(viii) Formulating the criteria for evaluation of
performance of independent directors and

40
Directors’
Report
 ANNUAL REPORT 2020
Dear Shareholders,
We are delighted to present the Directors’ Report and Audited Financial Statements together with the
Auditors’ Report thereon for the year ended on June 30, 2020.
Electricity in Bangladesh
Electricity business in Bangladesh is dominated by the Government Companies/Authority. Government
has a vision to supply electricity to all with a reasonable and affordable price by 2021. According to Power
Sector Master Plan, generation of electricity will be enhanced to 24 thousand Megawatt by 2021 and 40
thousand Megawatt by 2030.
Currently power production capacity of Bangladesh is approximately 23.55 thousand Megawatt with over
138 numbers of power plants (including captive power plants). Power generation has been enhanced from
220 kW to 512 kW per head per year. Now 98% of population is under electricity facility. National Budget
Directors’ Report

for power sector was 28,051 Crore Taka for the financial year 2019-20. Around 58 lac off-grid solar home
systems installed across the country.
Source: Annual Report 2019-20 of Power Division

Industry outlook
Power Sector of Bangladesh are segregated in three type of companies according to their functions.
Power Generation responsibility lays on Bangladesh Power Development Board (BPDB) and its subsidiary
companies. There are several Independent or Private or Rental Power Generation companies including
REB, who sell electricity to BPDB.
Power Grid Company of Bangladesh Ltd (PGCB) has the sole responsibility to transmit the electricity from
different power stations to different distribution entities through High Voltage Grid Network.
The responsibility of distributing electricity across the country is shared by various public
companies/entities like BPDB, Dhaka Electricity Supply Company Limited (DESCO), Dhaka Power
Distribution Company Limited (DPDC), Rural Electrification Board through various Palli Biddut Samity
(PBS), West Zone Power Distribution Company Ltd. (WZPDCO) and Northern Electricity Supply Company
Ltd. (NESCO) each having respective franchise area.
Product-wise performance
Income from energy sales for FY 2019-20 from different tariff category i.e. Domestic (LT-A), Non-Residential
(LT-D1), Commercial & Office (LT-E), Medium Voltage (MT-1, MT-2, MT-3, MT-4, MT-5, MT-6) and Construction
& Others (LT-C2, LT-T) is 3826.92 Crore, which is 1.51% lower than that of the previous year. On the other
hand, revenue from Agricultural Pump (LT-B), Small Industries (LT-C1), High Voltage (HT-1, HT-2, HT-3) and
Street Light & Pump (LT-D2) is 115.47 crore, which is 14.70% higher than that of the previous year. However,
overall revenue from Energy Sales decrease by 1.10%. DESCO purchase Electricity solely from Bangladesh
Power Development Board (BPDB) at the rate of Tk 6.746/Kwh (including wheeling charge).
Risks and Concerns
The Board of Directors always concern about the different aspect of risks in the company. They provide
time to time guidance of different risks issues. The main objectives of those guidance are:
a) Ensure safety, security and health of the employees.
b) Ensure continuity of power supply to the customers.
c) Protect company’s assets and reputation.
d) Effective operation without hampering community interest and environment.
e) Protect the interest of the other stakeholders.
f) Create and promote risk awareness culture within the company.
g) Compliance with all legal guidance.

42
 ANNUAL REPORT 2020
DESCO adopts following mechanisms to mitigate the risks: a) Internal control system; b) Control on
financial reporting; c) Internal audit; d) External audit; e) Budgetary control; and f) adoption of operational
manual, grid code, security manual etc.
Cost of Goods sold, Gross Profit and Net Profit
Electricity is purchased solely from Bangladesh Power Development Board at the rate of Tk.6.4523/kWh
effective from 01 March 2020. The company also pays wheeling charge to Power Grid Company of
Bangladesh Ltd at Tk. 0.2944/kwh. Company also incurs operating expenses like Administrative Expenses,
Commercial Operation Support Service, Scheduled and Preventive Maintenance, Special Action Team and
Collection Drive, Consultancy for Staking sheet, Maintenance of Distribution Lines and Equipment, Repair
and Maintenance of substations and Transformers etc. It also pays Bangladesh Energy Regulatory
Commission License Fee, Listing Fee of the Exchanges and System operating Fee to BERC. The detailed
are discussed in Note 26 to 28 of the Financial Statements.

Directors’ Report
Gross profit of the company increased by taka 12.40 crore from last financial year. Profit before tax is also
decreased by taka 45.95 crore mainly because of decreas in electricity consumption due to COVID
pandemic. Net profit after tax in 2019-20 decreased by 57.61% due to decrease in sales volume.
Extraordinary gain or loss
Exchange fluctuation loss of Tk. 9.12 crore has arisen out of translation of foreign currency loan (in US
dollar) into taka at Financial Position date at the rate of Tk. 84.85/$1 (2018-19: at Tk. 84.50/$1). On the
other hand, Interest income of this year increased by 3.90% and Interest Expense against GOB,AIDB, JICA&
ADB loan increased by 24.01%.
Related party transaction statement
DESCO purchase power from Bangladesh Power Development Board who holds 67.63% shares of the
company. DESCO paid 3605.20 crore taka to BPDB against power purchase bill. On the other hand, last
financial year DESCO paid Dhaka Power Distribution Company Ltd., who have common Directors (Managing
Directors of both companies are director of other company), Taka 13.84 Lac against consumer bills which
was outstanding from Dhaka Electric Supply Authority (DESA) period.
Utilization of proceed raised through Direct Listing
DESCO offloaded its 25% shares i.e. 31,77,985 of taka 100 each held by Dhaka Electric Supply Authority
(DESA) in the year 2006 and further 10% i.e. 2,93,10,425 number of shares of taka 10 each in the year 2017.
All proceeds are paid to DESA and Bangladesh Power Development Board against the asset of Mirpur
Circle of DESA.
Financial Results after Direct Listing
Financial Results did not deteriorate after listing with the exchanges.
Variance between Quarterly and Annual Financial Statements
There exists no significant variance between First Quarter (Q1) and Second Quarter (Q2) financial
statements. Due to COVID-19 pandemic, net profit decreased noticeably in the Annual Financial
Statements. The other reasons for this significant decrease in profit are enhancement of interest
expenses & tax expenses.
Operating revenue decreased in Third Quarter(Q3) due to COVID-19 pandemic and low power demand
during winter season. Which is reflected in the Annual Financial Statement.
Board Meetings, Attendance and Remuneration
During the financial year 20 (Twenty) Board Meetings were held. As per corporate governance guidelines
the Company Secretary and CFO attended all meetings. The attendance record of the Board Meeting is
shown at Annexure- I of this report. No remuneration was paid to the Directors apart from their meeting
attendance fees.

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 ANNUAL REPORT 2020
Other Regulatory Disclosures
The Company is hereby declaring that:
a) The financial statements prepared by the management present fairly its state of affairs, the result of
its operations, cash flows and changes in equity.
b) Proper books of accounts have been maintained.
c) Appropriate accounting policies have been constantly applied in preparation of the financial
statements and that the accounting estimates are based on reasonable and prudent judgement.
d) International Accounting standards (IAS) or International Financial Reporting Standard (IFRS), as
applicable in Bangladesh, have been followed in preparation of the financial statements and any
departure there from has been adequately disclosed.
Directors’ Report

e) The system of Internal Control is sound in design and has been effectively implemented and
monitored.
f) Minority shareholders have been protected from abusive actions by, or in the interest of, controlling
shareholders acting either directly or indirectly and have effective means of redress.
g) There is no significant doubt upon the company’s ability to continue as a going concern.
h) No bonus share or stock dividend has been or shall be declared as interim dividend.
Shareholding Pattern
The pattern of shareholding along with the name-wise details of (i) Parent/Subsidiary/ Associated
Companies and other related parties; (ii) Shareholding of Directors; (iii) Shareholding of Chief Executive
Officer (CEO), Chief Financial Officer (CFO), Company Secretary (CS) and Head of Internal Audit (HIA); (iv)
Shareholding of Senior Executives (Top five salaried persons other than CEO, CFO, CS, HIA) and (v)
Shareholder(s) holding 10% or more voting interest in the company as on 30 June 2020 are shown at
Annexure-II.
Internal Audit
Internal Audit division is responsible for performing various audit programs relating to different functions
and activities of DESCO for ensuring transparency & accountability in its activities with an aim to provide
better service to its valued customers. For this purpose, the Internal Audit Division performs various audit
programs round the year. The audit program in a certain division is performed by the Internal Audit
division employee along with other staffs of the organization, when required, who are not directly involved
in the activities of that division.
Internal Audit Division has performed different audit programs on different issues as mentioned below
and prepared audit reports in the financial year 2019-2020.

Sl No Name of the topics Duration

01 Development Works & Deposit Works.
02 Bill & Voucher (Finance & Accounts division) July 2019 to June 2020
03 Various Works of Testing and Repairing Department.

Dividend
Based on the performance of the Company, the Board of Directors recommends 10% cash dividend for the
financial year 2019-20. Since listing with the exchanges, the company paid dividend to its valued
shareholders on regular basis.

44
 ANNUAL REPORT 2020

Dividend
50%

45%

40%
15%
35%
25%
Percentage (%)

30% 10%

25%

20% 10% 10%

25%
15% 30%
25% 25% 5%
10% 20% 20% 10%

Directors’ Report
15% 15%
12%
5% 10% 10% 10% 10% 10%
5% 5%
0%
2005-06 2006-07 2007 -08 2008-09 2009-10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 2019 -20

Stock/Bonus Shares Cash

Capital Structure
The distribution of shareholding and type of shareholding are shown below:
Authorized Capital : Tk. 500 crore
Paid up Capital : Tk. 397.57 crore
Total Shares : 397,569,804 Nos.
Class of Share : Ordinary Shares of Tk.10/- each
Stock Exchange Listing
Dhaka Electric Supply Company Ltd. (DESCO) is listed with Dhaka Stock Exchange Ltd. (DSE) and
Chittagong Stock Exchange Ltd. (CSE).
Distribution of Shareholdings
Number of Shareholders on 30 June, 2020 stood at 5718 nos.

Number of % of Number of % of
Range of holding in numbers
Shareholders Shareholders Shares Share Capital
less than 501 2147 37.55 373588 0.09
501 to 5,000 2559 44.75 4799081 1.21
5,001 to 10,000 396 6.93 2920779 0.73
10,001 to 20,000 244 4.27 3575281 0.90
20,001 to 30,000 109 1.90 2685034 0.68
30,001 to 40,000 45 0.79 1585530 0.40
40,001 to 50,000 33 0.57 1519759 0.38
50,001 to 100,000 65 1.14 4987436 1.25
100,001 to 1,000,000 97 1.70 30879043 7.77
Over 1,000,000 23 0.40 344244273 86.59
Total 5718 100.00 397,569,804 100.00

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 ANNUAL REPORT 2020
Shareholding Composition as on 30 June, 2020

Number of Number of % of
Category
Shareholder Shares Total Shares
Government 1 268,866,788 67.63
Institute 274 94,434,297 23.75
Public 5,401 33,505,853 8.43
Foreign (NRB) 41 762,866 0.19
Total 5,718 397,569,804 100.00

Board of Directors
As per nomination of the Power Division, Ministry of Power, Energy and Mineral Resources (MPEMR),
Directors’ Report

Government of Bangladesh, (1) Mohammad Nazmul Abedin, Deputy Secretary, Power Division, Ministry of
Power, Energy & Mineral Resources, (2) Md. Saiful Islam, Chairman Alluring Group in place of Md. Nazmus
Sadat Salin and Engr. Md. Rabiul Hasnat respectively, were appointed as Independent Director of DESCO
Board. Md. Kausar Ameer Ali, Managing Director of DESCO was appointed as Director of DESCO Board in
place of Brig Gen Md Shahid Sarwar, ndc, psc (Retd). The current combination of the Board is as follows.

Sl. No. Name Position in the Board First Appointment Date

01. Mosammat Maksuda Khatun Chairman 25/06/2019
02. Mr. Md. Zahurul Haque Director 25/01/2017
03. Md. Kausar Ameer Ali Director 30/03/2020
04. Engr. Bikash Dewan Director 16/08/2017
05. Dr. S. Shahnawaz Ahmed Director 28/09/2017
06. Dr. Shah Md. Helal Uddin Independent Director 03/09/2019
07. Md. Rokon-ul-Hasan Director 26/04/2019
08. Mr. Mohammad Nazmul Abedin Independent Director 29/09/2020
09. Engr. Ataul Mahmud Director 20/06/2014
10. Mr. Md. Anisur Rahman Director 14/08/2016
11. Mr. Md. Anwarul Islam Director 28/08/2017
12. Md. Saiful Islam Independent Director 25/10/2020

Responsibilities of the Board

Section 181 of the Companies Act 1994 requires Directors to ensure that the Company keeps proper books
of accounts of all transactions and prepare financial statements that give a true and fair view of the state
of the Company's affairs and of the profit for the year.
The Directors are also required to ensure that the financial statements have been prepared and
presented in accordance with the requirements of the International Accounting Standards/ International
Financial Reporting Standards as adopted by the Institute of Chartered Accountants of Bangladesh and
provide the information required by the Companies Act 1994, Securities and Exchange Ordinance 1969,
Securities and Exchange Commission Rules 1987 and the regulations of the Dhaka / Chittagong Stock
Exchanges. They are also responsible for taking reasonable measures to safeguard the assets of the
Company, and in that context to establish appropriate systems of internal control with a view to the
prevention and detection of any fraud and other irregularities.

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 ANNUAL REPORT 2020
The Directors have always recognized the important role played by the honorable Shareholders of the
Company in assisting the Board to implement proper corporate governance. The Company also welcomes
the active participation of the Shareholders at the Annual General Meetings and solicits their views at all
times, promoting healthy dialogue. Whenever possible, the Company has also implemented suggestions
of the shareholders. The Board and the Company Management constantly interacts with the shareholders
of the Company through quarterly and annual publications of financial statements, meetings and other
forms of communications.
In discharging its responsibilities, the Board is guided by the regulations contained in the Memorandum
and Articles of Association of the Company, the Companies Act, 1994, relevant applicable regulations,
BSEC Codes of Corporate Governance, Listing Regulations, Company's Standards of Business Conduct,
Business Principles, Statement of Delegated Authorities, and other generally accepted corporate best
practices.
Chairman of the Board

Directors’ Report
The Chairman is elected by the Board of Directors and the Board considers the Chairman being
independent.
Roles and Responsibilities of the Chairman
The Chairman’s responsibility is defined by the Board as directed by BSEC’s notification on Corporate
Governance Code.
As Chairman of the Board of Directors (or Chairman of any Committee formed by the Board), does not
personally possess the jurisdiction to apply policy making or executive authority, he does not
participate in or interfere into the administration or operational and routine affairs of the Company.
The Chairman ensures that the Board is functioning in accordance with the Memorandum and Articles
of Association of the Company as well as other applicable laws.
The Chairman presides over meetings of the Board and Shareholders and ensures good Corporate
Governance in it conducts.
The Chairman maintains relations with the relevant stakeholders in consultation with the Board as
well as the Managing Director, representing the Company as a good/responsible corporate citizen.
The Chairman may assume any responsibility if the Board assigns within the purview of the relevant
Rules, Regulations, Acts and Articles.
Managing Director
The Managing Director is responsible for driving business operations, leading the development and
execution of the Company’s long-term strategies with a view to creating shareholders’ value. His
leadership role also entails being ultimately responsible for all day-to-day management decisions and for
implementing the Company’s long and short-term plans. He acts as a direct liaison between the Board
and Management of the Company and communicates to the Board on behalf of the Management. He also
communicates on behalf of the Company to the shareholders, employees, Government authorities, other
stakeholders and the public.
Executive Director (Finance and Accounts)
He is the Chief Financial Officer of the Company and reports directly to the Managing Director. He is
responsible for managing the financial and accounts of business in totality and ascertaining a continuous
growth with improved performance enabling the organization to increase profitability. He should interact
with the Board and take directives from the Board in order to uphold the interest of the stakeholders and
maintain transparency. He will be responsible for all major decisions related to Finance, Accounts and ICT
matters.

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 ANNUAL REPORT 2020
Company Secretary
The Board has appointed a Company Secretary in order to maintain the necessary link and liaison with
the internal organs, as well as external agencies, and also to ensure effective collection, compilation and
timely flow of information to and from the Board. The Corporate Governance Code issued by BSEC also
require a listed company to appoint a Company Secretary. Being a governance official, the Company
Secretary drives for corporate compliance and provides support to the Chairman and other members of
the Board to ensure effective functioning of the Board. The Company Secretary organizes and attends all
Board and Committee meetings (Audit Committee), and ensures that deliberations on all issues are
properly minuted, decisions recorded and are duly communicated across the respective authorities for
necessary information/actions.
Head of Internal Audit
Deputy General Manager (Internal Audit) is the head of the Internal Audit Department reporting to the
Managing Director with collective responsible for the audit related tasks and services used in DESCO and
Directors’ Report

to manage proper financial procedures and systems are operated and maintained. To ensure that all
expenses data is properly submitted and that all expenses are reasonable and allocable and conform to
principles and guidelines. To ensure that all auditing process is carried to highest standard of probity.
Human Resource Development (HRD)
Human Resource Development is one of the prime concerns of DESCO. For this purpose it has given due
emphasis on inclusive training/seminar/workshop programs on updated technical issues, administrative
procedure, financial and ICT issues. For preparing annual training calendar DESCO gives priority on need
based training for HRD. In this connection for the last financial year DESCO achieved 122,276 man hours
conducting 667 number of training on different contemporary issues giving special emphasis on operation
& maintenance of distribution network, automation & protection, safety, discipline, customer care
excellence, e-filing, e-GP, Enterprise Resource Planning (ERP), good governance, National Integrity
Strategy (NIS), Annual Performance Agreement (APA), Innovation, Financial Management and Information
Technology, fire fighting and security. Targeted 1661 employees (Year to Date Average) received In-house,
outsource, on the Job trainings under the direct supervision of Human Resource Management Division.
Besides In-house trainings, employees also participate in trainings/ seminars/ workshops in outside
organizations at home and abroad.
Corporate Social Responsibility (CSR)
The ethos of DESCO for pursuing its activities in social arena has got further momentum with continuous
enthusiasm and support of the stakeholders. Besides running on commercial basis, DESCO also recognizes
some social responsibilities such as collects electricity bills at a nominal rate from the Ijtema Committee,
provides support to the freedom fighters, distributed 2400 nos. N95 Mask to the four COVID-19 dedicated
hospitals in the Dhaka city and relief to the flood affected people at the Tangail, Barishal and
Chapai-Nabaganj districts. DESCO contributed 1(one) Core taka to the Honourable Prime Minister’s Relief
Fund. DESCO also contributed to the other social activities as decided by the Board from time to time.

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 ANNUAL REPORT 2020
Key Performance Indicator
Key Performance Indicator (KPI) is a set of quantifiable measures that an organization uses to measure
or compare performance in terms of meeting their strategic and operational goals. An organization may
use KPIs to evaluate its success, or to evaluate the success of a particular activity in which it is engaged.
A Memorandum of Understanding (MOU), in this regard, was signed between Power Division, Ministry of
Power, Energy & Mineral Resources (MPEMR) and DESCO with a achieve sets of Key Performance Targets
for the Fiscal Year 2019-20. The following table shows DESCO’s success in attaining all the targets.

Sl. No Indicators Units Target Achievement

Directors’ Report
1 Construction of distribution lines km 150 226.8
2 Construction/Capacity enhancement
MVA 560 1089
of distribution Sub-station
3 Distribution System Loss % 7.1 6.32
4 Net meter Installed Nos. 100 109
5 System Average Interruption Minutes/ year/
370 367.28
Duration Index (SAIDI) consumer
6 System Average Interruption Interruptions/
14 13.77
Frequency Index (SAIFI) year/ consumer
7 Power Factor at each billing point % 90 96
8 New Connection to the Households Nos. 40,000 45819
9 Installation of Pre paid meter Nos. 100,000 91173
10 Percentage of Overloaded Transformer % 0.25 0.17
11 Public Hearing Nos. 150 152
12 Accounts Receivables Eqv. months 1.61 1.99
13 Accounts Payable Month 1 Nil
14 Collection of Bill Ratio % 99.50 98.60
15 Current Ratio Ratio 2.10:1 1.65:1
16 Quick Ratio Ratio 1.20:1 1.28:1
17 Debt Service Coverage Ratio Ratio 1.20:1 1.80:1
18 Implementation of ADP (Financial) % 100 96.48
19 e-GP Tendering (all local below 100 crore) % 100 104
20 GIS Maping of all Substation % 25 25.6
21 GIS Maping of 33KV lines % 50 42
22 GIS Maping of 11KV lines % 25 39.7

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 ANNUAL REPORT 2020
Contribution to the Exchequer
Since commencement of its operation, DESCO has been contributing substantial amount to the National
Exchequer by way of VAT and Taxes as shown in the table below:
Figures in Million Taka

VAT and Income Tax 2015-16 2016-17 2017-18 2018-19 2019-20

VAT from Electricity Bills 1,504 1,709 1,778 1,999 1,771
VAT from contractors / suppliers Bills 76 108 169 164 235
Income Tax deduction at Source 138 191 239 272 273
Corporate Income Tax 243 150 267 440 171
Directors’ Report

Total 1,961 2,158 2,453 2,875 2,450

Statutory Auditors
Rahman Mostafa Alam & Co., Chartered Accountants, the existing statutory auditors of the Company shall
retire in the AGM upon accomplishment of audit of the company. They have expressed their willingness
vide letter received on 24/11/2020 to be re-appointed as statutory auditors of the company for the
financial Year 2020-21 with audit fee not below the amount fixed by the shareholder at last AGM of the
company.
On the other hand as per Corporate Governance Code issued by Bangladesh Securities and Exchange
Commission (BSEC) on June 03, 2018, it is required to appoint a firm for certification on compliance of
Corporate Governance Code. Suriaya Parveen & Associates, Chartered Secretaries ‘the existing firm’
expressed their intention vide their letter dated November 11, 2020 to be re appointed for the said purpose
for FY 2020-21 with a bit higher fee.
Audit Committee
As a measure of ensuring transparency and good Governance in its functional area, DESCO has formed a
4-member Audit Committee of the Board headed by an Independent Director Dr. Shah Md. Helal Uddin,
Joint Secretary, Power Division, Ministry of Power, Energy & Mineral Resources. The other members of the
Committee are (2) Mr. Md. Anwarul Islam, Managing Director, ARS Lube Bangladesh Ltd (3) Md. Saiful
Islam, Chairman, Alluring Group Ltd. and (4) Md. Atiqur Rahman, Company Secretary, DESCO. The
attendance record of the Audit Committee is shown at Annexure-III.
Election of Directors
In terms of Article 86 of the Articles of Association of the Company, (1) Mosammat Maksuda Khatun,
Additional Secretary, Power Division, Ministry of Power, Energy & Mineral Resources, (2) Md.
Rokon-ul-Hasan, PS to Honorable State Minister, Ministry of Power, Energy & Mineral Resources, (3) Md.
Anisur Rahman, Managing Director, Winner Consultants Ltd., and (4) Md. Anwarul Islam, Managing Director,
ARS Lube Bangladesh Ltd. will retire by rotation. However, as per article 87, the retiring Directors are
eligible to be re-elected as Directors of the Company.
On contrary, (1) Md. Kausar Ameer Ali, Managing Director, Dhaka Electric Supply Company Ltd., (2) Engr.
Bikash Dewan, Managing Director, Dhaka Power Distribution Company Ltd., (3) Md. Zahurul Haque,
Additional Secretary, Power Division, Ministry of Power, Energy & Mineral Resources, (4) Mohammad
Nazmul Abedin, Deputy Secretary, Power Division, Ministry of Power, Energy & Mineral Resources, (5) Dr.
Shah Md. Helal Uddin, Joint Secretary, Power Division, Ministry of Power, Energy & Mineral Resources, (6)
Dr. S. Shahnawaz Ahmed, Professor, Electrical and Electronic Engineering, Bangladesh University of
Engineering and Technology (BUET), 7) Md. Saiful Islam, Chairman, Alluring Group Ltd. and 8) Engr. Ataul
Mahmud, Ex-Vice President (Service and Welfare), Institute of Engineers, Bangladesh (IEB) shall continue
to act as Directors of the Board.

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 ANNUAL REPORT 2020
Brief Resumes of the Directors proposed to be elected/re-elected are shown under:

Sl. AGE Directorship

Name And Designation Qualification Experience Other
No. (yrs.) Than Desco
Mosammat Maksuda Khatun Electricity
01. 57 32 Years
Additional Secretary Master of Arts Generation Company
Years Govt. Service
Power Division, MoPEMR of Bangladesh.
Md. Rokon-ul-Hasan
Masters in Public Policy
02. Deputy Secretary 46
and Governce B.Sc (Engg.),
16 Years
PS to Honorable State Minister, Years Govt. Service
EEE, BUET
MoPEMR

Directors’ Report
Md. Anisur Rahman
53 15 years in
03. Managing Director Years
MA, DU
Business
Winner Consultants Ltd
Md. Anwarul Islam 15 years in
04. Managing Director 54 M. Com.,
Private service
Years MBA (DU), FCMA
ARS Lube Bangladesh Ltd and Business
Mohammad Nazmul Abedin M.S. in Local Governance
45 19 Years
05. Deputy Secretary (Perth), Honor’s & Master in
Years Govt. Service
Power Division, MoPEMR International Relation(DU)
13 years in
Md. Saiful Islam 39 B.S.S. and
06. Chairman, Alluring Group Private service
Years M.S.S (DU)
and Business

Corporate Governance Compliance Report

Dhaka Electric Supply Company Limited (DESCO) to this end has complied with all the requirements of
Corporate Governance Code. Accordingly, Corporate Governance Compliance Report is shown with
Corporate Governance Compliance Certificate.

Commercial Activities
Disconnection / Reconnections
Disconnection of electric line has been considered to be an effective tool to recover outstanding bills/dues.
By applying this tool a total number of 30,092 defaulting consumers’ services were disconnected during
the financial year. Moreover, 5,918 illegal consumer services were traced and disconnected during the
financial year.
During the financial year, 25,829 consumers were given re-connection on recovery of their outstanding
dues and realization of penalty bill as applicable. An aggregate amount of Tk. 39.37 crore was realized
from the defaulting consumers and Tk. 5.19 crore against penal/supplementary bills. All those initiatives
are implemented with the help of outsourced contractors and Mobile Court.
New Connections
45,819 new consumers have been added to our system this year. With these new conumers, the total
number of electric consumers under DESCO stands at 10, 01,799 at the end of the financial year.

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 ANNUAL REPORT 2020
Directors’ Report

Industrial Commercial Others Residential Industrial Commercial Others Residential

Metering
As meter is the ‘cash box’ of the Company, DESCO has left no stone unturned to change defective meters,
sealing meters and inspecting meters regularly. During the financial year, 11,873 nos. of defective meters
were changed and 21,564 nos. of meters were inspected.
Annual Bill Clearance Certificate
In order to attain satisfaction of the consumers, DESCO issues bill payment clearance certificates to those
consumers who do not have any dues.
Consumer Complaints
DESCO continuously strives to offer ‘service excellence’ to its valued consumers. Consumer complaints in
terms of the billing errors, rectification of names and addresses are seriously attended. During the
financial year, 6788 nos of bills were corrected. Names and addresses of 3221 nos. of consumers were
corrected upon verification on the basis of consumer complaints.
Prepaid Metering
DESCO has introduced a modern consumer friendly Pre-Paid metering system for its valued consumers
since 2005. Smart Card Base Pre-Paid Metering system having both way communication facilities allowed
the customers to pay their electricity bills in advance through DESCO's vending station. While it enables
the company to synchronize the relevant data regarding consumer electricity usages.
With a view to facilitating incessant supply of Pre-Paid meter in future, DESCO has set up a “Meter Plant”
at Mirpur on 2007. The company has manufactured and installed 20,000 Single Phase and 3000 three
phase Pre-Paid Meters. Around 3,21,012 nos. of valued consumers are enjoying electricity by Pre-Paid
metering facilities at DESCO area up to June 30, 2020. The area covered by Pre-Paid meter are Uttara
East, Uttara West, Uttarkhan, Dakshin Khan, Baridhara, Badda, Agargoan, Kafrul, Monipur, Pallabi,
Rupnagar Sales & Distribution Division. These meters were installed which have integrated with Unified
Smart Pre-Paid Metering Software to enhance the consumer service. Also 03 lac Pre-paid meter
installation is going on under two projects.
Billing/ Collection
The primary objective of maintaining the financial potency of the company is achieved by constant efforts
to uphold a vigorous billing/collection ratio.
Considering sales at Tk. 39509.101 million and collection at Tk. 38955.508 million, the billing collection ratio
works out at 98.60% and the Collection/Import (C.I.) ratio to 92.37% this financial year.

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 ANNUAL REPORT 2020
Accounts Receivable/ Sales
One of the indicators of efficient financial management is to decrease the accounts receivable/sales ratio.
The Company maintains a system of continuous monitoring of accounts receivable by way of monthly
reports and analysis. The Accounts Receivable/ Sales ratio works out to 13.66% this year as against 11.02%
in the previous year.
System Loss
This is a key performance indicator of any electricity distribution company and is determined by the
quantity of energy purchased and sold. The system loss works out to 6.32 % in this FY 2019-20 as against
7.11% in the previous year.

50 46.67
System Loss (%)
45

Directors’ Report
40
35
PERCENTAGE %

30 26.66
25
20 16.2
15
8.86 8.44 8.03
10 7.11 6.32
5
0
'97-98 '01 -02 '05-06 '09-10 12 -13 15 -16 18 -19 19 -20

One Point Service Center

Customer satisfaction is the key to success of any company. Our customers are our prime focus and we
are to ensure satisfactory customer service as deemed suitable. The issue is seriously considered by
DESCO, which led to the establishment of Customers’ “One Point Service Center” in each of the Sales and
Distribution Divisions. Any consumer coming to the Sales & Distribution Division of DESCO may receive
desired service and solution from the staff of the “One Point Service Centre”. The Customer Service
Centers are under continuous improvement in order to raise its performance standard up to the desired
level. For this purpose, DESCO is giving emphasis on routine training of the employees.
Citizen Charter
This is an official document of the organization’s commitment to its consumers. The Citizen Charter makes
it very clear that the services required from DESCO by its customers are their rights rather than
considering that as favour to them. The increasing demand by the public for time bound services will bring
qualitative improvement in services by DESCO and the charter will help DESCO to evaluate the delivery of
services.
The citizen Charter of DESCO is kept displayed at its Customer Service Centers for awareness of the
customers. There are also some printed leaflets on different category of services available at the
Customer Service Centers of DESCO. DESCO’s Citizen Charter is also available in DESCO website.

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 ANNUAL REPORT 2020
Technical Activities
Load Growth
Load Growth in the distribution area of DESCO is gradually increasing except Financial Year 2019-20. Due
to COVID-19 pandemic shoping malls were closed, many industries were slow down resulting lesser
electricity use comparing the previous year. In the year 2019-20 the maximum demand in DESCO area was
1,031 MW. The trends are shown below:

LOAD GROWTH (MW)

1200
1069
1031
1000 934
845
Directors’ Report

800 726
640
545
MW

600
451
377
400 315

200

0
2002-03 2004-05 2006-07 2008-09 2010 -11 2012 -13 2014 -15 2016 -17 2018 -19 2019 -20

Substation Erected
DESCO always feels to be consistent with load growth and capacity enhancement. As such it took various
projects for capacity building. In FY 2019-20, the company has increased power handling capacity of 1005
MVA. A list of installed substations during FY 2019-20 is given below:

Sl. No. Substation of the Name Capacity (MVA)

1 Uttarkhan (New) (28x3) 84
2 Uttara-14 (New) (28x3) 84
3 Satarkul-1 (New) (28x3) 84
4 Sholahathi (New) (28x3) 84
5 Purbachal Grid 84
33/11 kV sub total 420
6 Purbachal Grid 240
7 Basundhara Grid 135
8 Uttara Grid 210
132/33 kV sub total 585
Total Capacity Increased 1005

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 ANNUAL REPORT 2020
Substation under Construction
Following substations will be commissioned within June 2021 & capacity will be added up to 600/840 MVA
to the distribution system.

Sl. No. Name of the Substation Capacity (MVA)

1 Kazipara 3 x 20/28
2 Rakeen city (New) 3 x 20/28
3 Tongi-27 (New) 3 x 20/28
4 Tongi -1 (New) 3 x 20/28
5 Tongi BASCIC (Reh) 3 x 20/28
6 Eastern Housing (New) 3 x 20/28
7 Ahsania Mission (New) 3 x 20/28
8 Bashundhara Block I 3 x 20/28

Directors’ Report
9 Mohakhali DOHS 3 x 20/28
10 MerulBadda 3 x 20/28
Total capacity will be increased 600/840

Electric Line Construction

Every year DESCO expands its source line and distribution network. The following table shows a picture of
electric line construction carried out during the financial year 2017-18, 2018-19 and 2019-2020.
Length
Sl.
No Type of Line Level 2017-18 2018-19 2019-20
Circuit km Circuit km Circuit km
1 33 kV - - -
2 O/H Line 11 kV 102.88 60.63 33.35
3 Construction 11/0.4 kV 56.20 45 31.37
4 0.4 kV 46.44 68 20.80
Sub Total 204.36 173.63 85.52
5 132 kV - - 14.936
U/G Line
6 33 kV 17 21.76 111.05
Construction
7 11 kV 33.86 36.11 14.924
Sub Total 51.741 57.87 141.28
8 Renovation 50.51 27.26 7.45

Distribution Transformer
In order to cater the increasing load demand and enhance distribution capacity, DESCO has installed 115
nos. of three phase 200 KVA 11/0.4KV and 3 nos. single phase 25 KVA transformers, in addition to
transformers installed by the consumers at their own accord.
Energy Saving & Use of Alternative Energy
Power saving means power generation. Aiming this motto, DESCO has undertaken measures like
distributing leaf-lets, displaying posters and festoons encouraging the consumers to use energy efficient
appliances in their homes/offices, turning off lights and fans when not in use and replacing the
incandescent lamp by CFL (Compact Florescent Lamp) etc.

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 ANNUAL REPORT 2020
In financial year 2019-20, DESCO installed 3707 nos. of eco-friendly solar panels at consumer premises
which added 4.17 kWp capacity. Besides this, DESCO ensured owninstallation of solar panel of capacity
around 68 kWp during FY 2019-20 at its own premises. Moreover, two solar charging stations of total 32
kWp on grid capacity were installed. In order to ensure the proper use of installed solar system, DESCO
took various initiatives for publicity so that consumers can be benefited through net metering. By the end
of June 2020, in total 223 consumers used net metering facility of 1.384 MW capacity. DESCO is also
working wholeheartedly to install solar system along with net metering facility in OPEX model in school,
college and other government organizations.
E-Governance
It necessitates efficient use of electronic state management system based on Information &
Communication Technology (ICT) including the Internet Technology. The main purpose is to ensure good
governance in all functional areas of the establishment.
To keep it with the modern technological advancement in IT (Information Technology) sector and to make
the utility management more efficient, DESCO management decided to develop an accountable and
Directors’ Report

transparent governance system with a unified approach. As a consequence, One Point Service Centre,
Complaint Management, New Connection, Monthly Bill Collection, Miscellaneous Bill Collection, DESCO
Website and E-mail Communication, Inter Office Wide Area Network (WAN) Connectivity has been
successfully developed and implemented.
Digital Services
To achieve “Vision 2021” of digital Bangladesh, DESCO has introduced internet based self-services. Now
DESCO provide following digital Services:
Bill Payment through SMS (2009)
Online Bill Payment (2010)
On-Line Application for New Connection (2012)
Online Job Application (2012)
Mobile Banking Bill Payment (2014)
Payment through Live Payment Gateway (2014)
Mobile Application for Prepaid and Post Paid Consumers (2020)
Inventory Management System
Online Customer Management System (2018)
Mobile Application Based Smart Management Reporting Solution(2020)
DESCO Mobile Application (Mobile Apps)
DESCO new mobile application is a unique one in Bangladesh including the facility of both Postpaid and
Prepaid bill in same application. This mobile apps can be used for:
Both Postpaid and Prepaid bill.
Usage bar Chart
Prepaid bill payment history
View electricity usage for past 12 months
Contact your S&D office for service and emergency
View the location and address of your S&D Office in Map
View all your DESCO Electricity bills through one app and pay all your due bills from the application by only
a few taps. Features of DESCO apps are:

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 ANNUAL REPORT 2020
View all your bills
Pay due bills
View electricity usage for past 12 months
Contact your S&D office for service and emergency
View the location and address of your S&D Office in Map
e-GP (e-Tendering)
Since the Government has decided to introduce e-Tender system to put an end to tender manipulation,
DESCO has introduced e-Tendering system to facilitate its procurement process. The main functions are
online bidder registration, email acknowledgement of new tender according to bidder’s interest list, online
bid participation, edit submitted documents/bids till closing date, online tender specification with a
comprehensive security. This system prepares customized comparison sheet of the submitted bids to
accelerate the evaluation process.
Looking into Future

Directors’ Report
DESCO has completed a study to ascertain the load demand and consumer growth in DESCO area up to
the year 2041 with every 5 years phasing. The report shows that the load demand and consumer growth
is as follows:

Year Demand (MW) Consumer (Nos) 132/33 kV SS 33/11 kV SS

2025 2459 14,59,163 18 73
2030 3677 20,94,817 22 99
2035 5296 26,73,577 31 123
2040 7376 34,12,237 44 154
2041 7822 35,48,726 44 154

Two new townships namely “Purbachal Model Town” and “Uttara Model Town (3rd Phase)” are being
developed by RAJUK in the DESCO area. These new townships have already been added to DESCO’s
operational area and Electrical network development is going on. The demand of “Purbachal Model Town”
and “Uttara Model Town (3rd Phase)” are expected to be about 1103 MW and 465 MW respectively. At
present, due to slower urbanization in RAJUK Purbachal new city, Uttara 3rd phase area, delay of some
Mega project e.g. MRT, BRT, Airport 3rd Terminal project in DESCO area, GDP effect and present COVID-19
situation DESCO load forecast is slightly less than the expected. DESCO is going to engage an
International Consulting Firm, to revise and finalize the load forecast in DESCO area very soon.
To strengthening its distribution network and create additional facility for connection of new consumers
DESCO has taken a Project for FY 2021-2025 namely “Expansion and Strengthening of Electrical
Infrastructure in DESCO area” and the Project cost is approximately 187825.08 Lac Taka. This Project will
create the facility to support urbanization, industrialization and improve the infrastructure facility to cater
the load demand up to 2030.
To enhance the distribution network reliability DESCO has taken a project to convert all 33 kV overhead
lines to underground lines within 2021. Besides, DESCO is going to introduce SCADA Project for automation
of all substations and Geographic Information System (GIS) based application for better consumer service
in its jurisdiction. Both projects are expected to complete by the year 2021.

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New development projects
Seven (07) projects are ongoing to enhance the DESCO’s infrastructure capacity up to 2818 MVA, which will
cover about 11,60,000 nos. of consumer. These projects are financed by Asian Development Bank (ADB),
Asian Infrastructure and Investment Bank (AIIB) and Japan International Cooperation Agency (JICA) to
meet the demand up to the year 2025. Total cost of these projects has been estimated around BDT 5000
crore. Two (02) projects are expected to be completed within December 2020 and one (01) project will be
completed by 2023. The rest four (04) projects are expected to be finished by June 2021. To cater the
demand of the year 2030, DESCO has undertake several upcoming development projects. Major
components and current status of the said projects are as below:
Construction of 132/33/11 kV Grid Substations
This project includes installation & commissioning of 05 nos. new 132/33/11 kV Grid Sub-stations and
Directors’ Report

installation of 152.742 km (25.457 double circuit km) 132 kV source lines. After completion of the project,
1200 MVA will be added at 132kV level and 420MVA will be added at 33kV level. Already Grid Substation at
Uttara Sector-18 & Aftabnagar are successfully commissioned and Purbachal substation is waiting for
commissioning and construction works as well as testing works of the remaining 02(two) substations
under this project are almost completed.
Augmentation and Rehabilitation of Distribution System in Desco area
This project includes 07 lots in 02 packages. Lot-3 of package -C1: Installation & commissioning of 16 nos.
new 33/11KV substations, 08 nos. Augmentation & Rehabilitation 33/11KV substations on turnkey basis. In
package C2 there have 06 lots. Such as Lot – 1: Procurement of 80.5 CKT. KM 33KV Cable, 230 KM 11KV XLPE
underground cable & Accessories, Lot – 2: Pole & Pole fittings, Lot – 3: 1500 Nos. 200KVA 11/0.4KV, 300 nos.
25KVA 11/0.23KV Distribution Transformer & 150 nos. RMU, Lot – 4: Transformer protection equipments,
Lot-5: Conductor, Insulator & accessories, Lot – 6: Installation & commissioning of 02 Lac smart prepaid
meter on turnkey basis. After completion of this project 1240/1736 MVA will be added in existing system.
Already 15 nos. substations (New sites: Mirpur DOHS – 2, Lakecity, Barua, Uttarkhan, Diabari (Sector – 15),
Uttara Sector – 14, Tongi Sataish, Satarkul – 1, Rakeen City and Augmentation/Rehabilitation sites: Baunia,
CAAB, ADA, Agargaon – 2, Mirpur Section – 6, Mirpur DOHS – 1) are successfully commissioned and
remaining 09 nos. substations construction works are ongoing. Also 500KM overhead line construction,
1500 nos. 11/0.4KV, 300 nos. 11/0.23KV distribution transformer, 150 nos. RMU, 267.89 CKT. KM 33KV & 11KV
Underground line have already been Completed. Remaining underground line & smart prepaid meter
installation works are ongoing.
Installation of Supervisory Control and Data Acquisition (SCADA) System
DESCO has to meet up the demand of 1516 MW within 2021, 3672 MW within 2030 and 8017 MW within
2041. To distribute this demand, by 2021 DESCO will have a total number of 69 substations (7nos 132/33kV
Grid Substations, 49nos 33/11kV substations and 13nos 11kV switching stations). Between the years
2020-2025 DESCO will construct additional five (5) 132/33 kV Grid substations and ten (10) 33/11 kV
substations and between the years 2025-2030 DESCO will construct additional six (6) 132/33 kV Grid and
sixteen (16) 33/11 kV substations to make this distribution network extensively scalable to distribute this
demand. To implement this reliable and sustainable quality power distribution network, DESCO is now in
prime need to implement the smart grid.
With the goal for reliable and sustainable quality power distribution to consumer and Maintaining Optimal
load-based flexible operation with automatic collection of network information, DESCO has taken this
SCADA Project on January-2016. This SCADA project is funded by the Asian Development Bank (ADB), and
the target period for system commissioning is on March-2021. SCADA system will ensure DESCO for the
reliable and sustainable quality power distribution network to the consumer, demand-side management
to operation end for achieving energy efficiency and enhancing the operational efficiency of the
distribution network. The SCADA system will be complemented in the future to give in-depth network
information all the way to the end-users (customers). Till to date, SCADA Main control centre construction

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works has been completed, and implementation of SCADA telecommunication equipment is going on
currently.
Augmentation and Rehabilitation of 132/33/11 kV grid substation at Bashundhara and Uttara
The objective of this project to increase capacity of existing 02 Grid Substations from 250/375MVA to
480/720 MVA at 132 kV & 33 kV level. Construction works of this project are in full swing.
Conversion of existing 33 kV overhead lines into underground cables
The main objective of the project is to enhance system stability and reliability by reduction system
interruption and frequency through modernizing distribution system and upgrading source line.
Specific Objectives:
i. To install 33KV underground cables.

Directors’ Report
ii. To upgrade existing 33KV underground cables and to convert 33KV overhead cables to underground
cables.
iii. To establish connectivity between underground cables and distribution substations.
iv. To reduce System Average Interruption Duration Index (SAIDI) & System Average Interruption
Frequency Index (SAIFI) of electricity distribution system.
Construction of 132/33/11 kV Underground Grid Substation at Gulshan in Dhaka
It is necessary to expand the distribution capacity of substations in Dhaka immediately, however, there is
another constrain, acquiring space for constructing new substations is difficult because the ratio of open
space in Dhaka is less than 1 % (Dhaka Structure Plan 2016-2035), land prices is rising rapidly and a land
owner does not tend to release their owned land. Therefore, it is required to realize the expansion by
constructing new substations in the space which distribution companies already own without stopping
operation of any existing substations. Therefore, Power Division and DESCO examined and compared the
feasibility of several distribution forms to be adopted, namely indoor substation at existing area, outdoor
substation at existing area, outdoor substation at outer area (utilizing new space) and Underground
Substation (hereinafter referred to as “UGSS”) at existing area.
As a result, Power Division and DESCO concluded that adopting UGSS is most feasible, reliable and
preferable. Considering the above, DESCO has taken initiative to construct an underground grid substation
at Gulshan. This substation will enhance DESCO’s present capacity by 360 MVA at 33 kV Level and 150 MVA
at 11 kV level.
DESCO appointed an international consultant “JV of TEPCO Power Grid Inc and Tokyo Electric Power
Services Company Limited (TEPSCO)” for engineering services assistance of the project. Moreover, a
35-storied iconic superstructure will be constructed above the substation. An Architectural firm,
“37BRIDGE”, has been selected from an open competition organized by Institute of Architects Bangladesh
(IAB) and then appointed for design and development of superstructure. Both the firm, international
engineering service consultant and local architectural firm coordinated with each other and developed the
total design (Substation with Superstructure). It is expected that the construction of UGSS, the first ever
UGSS in Bangladesh, will be completed by December, 2023.
Supply and Installation of Smart Pre-payment Meter in DESCO area
DESCO has undertaken the project in order to Supply and Installation of 2,00,000 (Two lac) smart
pre-payment meter in DESCO area under GoB fund. The main objective of the project is to ensure better
consumer service, load management and revenue earnings in advance through digitalization.
Construction of DESCO Head Office Building
DESCO has taken an initiative to construct a 12 Storied (with six basements) Head Office building at Plot
no 49/A, Nikunja-2 Area beside Dhaka-Mymensingh Highway. An open Architectural Design competition
was arranged through Institute of Architects Bangladesh (IAB) for selecting the design. Among 69

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(sixty-nine) participants in the competition, the best design was selected by the jury board comprised of
renowned architects and expert members. The Head office building will be “Iconic” and prestigious one
with the state-of-the-art facilities. Highly Energy efficient, sufficient natural light usage provision, safe &
secure, sustainable and symbolic to electricity distribution business. Complex shall be as per RAJUK
approved layout plan with well air ventilation system and there shall be capacity of office arrangements
of head office officers and staffs to carry out their official activities. Total land area of the building site is
40.25 katha (28,980 sq.ft.). The total buildable area would be 2,71,114.62 sq. ft. Car parking and utility
facility in basements, Bank, ATM, vending station, waiting room, Reception, Office Room for building
maintenance, convenience store, kiosk at the ground floor. The project is expected to be completed within
October 2023.
Acknowledgement
Directors’ Report

On behalf of the Board of Directors, I would like to express my sincere gratitude to all honorable
shareholders, the Power Division, Ministry of Power, Energy & Mineral Resources, Economic Relations
Division, Ministry of Finance, Ministry of Planning, Power Cell, Bangladesh Power Development Board
(BPDB), Dhaka Power Distribution Company Ltd. (DPDC), Bangladesh Rural Electrification Board (BREB),
Power Grid Company of Bangladesh (PGCB), concerned Government Departments, Asian Development
Bank, World Bank, Bangladesh Securities and Exchange Commission (BSEC), Dhaka Stock Exchange Ltd.
(DSE), Chittagong Stock Exchange Limited (CSE), ICB Securities Trading Company Limited, and other
development partners for their continuous assistance, guidance and advice. I would also like to express
my heartfelt thanks to all the employees of the company on behalf of the Board of Directors for their
sincere and relentless efforts in performing their duties and responsibilities for prosperity and
development of the company.
In the end, I pray to the Almighty Allah that may the Company continue its performance gloriously
throughout the years ahead.

On behalf of the Board of Directors,

Mosammat Maksuda Khatun

Chairman, DESCO Board

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Annexure I: Attendance of the Board Meeting
Board Meeting and attendance during the year ended on June 30, 2020. During that year total 20 Board
meeting were held.

Sl. Meeting held No. of meeting Total

Name of the Directors while a attended inperson/ Director Fee Received
no.
member alternates (Excluding Vat & Tax)
01. Mst. Maksuda Khatun 20 20 2,10,000.00
02. Md. Kausar Ameer Ali 03 03 36,000.00
03. Brig. Gen. Md Shahid Sarwar, ndc, psc (Rtd.) 17 17 1,74,000.00

Directors’ Report
04. Engr. Bikash Dewan 20 19 2,00,000.00
06. Mr. Md. Zahurul Haque 20 16 1,66,000.00
07. Mr. A.K. M. Humayun Kabir 02 01 10,000.00
08. Mr. Mohammad Alauddin 11 10 1,00,000.00
09. Md. Nazmus Sadat Salim 09 09 1,00,000.00
10. Dr. Shah Md. Helal Uddin 18 16 1,70,000.00
11. Dr. S. Shahnawaz Ahmed 19 16 1,68,000.00
12. Mr. Md. Rokon-ul-Hasan 20 17 1,80,000.00
13. Engr. Ataul Mahmud 20 19 2,00,000.00
14. Engr. Md. Rabiul Hasnat 20 17 1,78,000.00
15. Mr. Md. Anisur Rahman 20 20 2,10,000.00
16. Mr. Md. Anwarul Islam 20 20 2,10,000.00

Annexure-II : Shareholding Pattern

i) Parent / Subsidiary / Associated Companies and other related parties:

Sl. % of shares as on
No. Name Number of Shares June 30, 2020
01. Bangladesh Power Development Board 263,793,834 66.35

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ii) Directors’ Shareholding

Sl. % of shares as
No. Name Designation on June 30, 2020
Mosammat Maksuda Khatun
Additional Secretary, Power Division
01 Chairman Nil
Ministry of Power, Energy & Mineral Resources
Govt. of the People’s Republic of Bangladesh
Md. Kausar Ameer Ali
02 Managing Director, Dhaka Electric Supply Director Nil
Company Limited (DESCO)
Mr. Bikash Dewan
Managing Director Director Nil
Directors’ Report

03
Dhaka Power Distribution Company Ltd.
Mr. Md. Zahurul Haque
04 Additional Secretary Director Nil
Member (Administration), BPDB
Md. Nazmus Sadat Salim
Joint Secretary, Independent
05 Power Division, Ministry of Power, Energy & Director Nil
Mineral Resources
Dr. S. Shahnawaz Ahmed
Professor, Electrical and Electronic Engineering Director Nil
06 Bangladesh University of Engineering and
Technology (BUET).
Dr. Shah Md. Helal Uddin
Joint Secretary, Power Division Independent
07 Director Nil
Ministry of Power, Energy & Mineral Resources
Govt. of the People’s Republic of Bangladesh
Mr. Md. Rokon-ul-Hasan
08 P.S to State Minister (Deputy Secretary) Director Nil
Ministry of Power, Energy & Mineral Resources
Govt. of the People's Republic of Bangladesh.
Engr. Ataul Mahmud
09 Ex-Vice President (Services & Welfare) Director Nil
Institute of Engineers, Bangladesh.
Engr. Md. Rabiul Hasnat
Director Independent
10 Director Nil
Real Estate & Housing Association of Bangladesh
Mr. Md. Anisur Rahman
11 Managing Director Director Nil
Winner Consultants Ltd.
Mr. Md. Anwarul Islam
12 Managing Director Director Nil
ARS Lube Bangladesh Ltd.

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iii) Shareholding of CEO, CFO, Company Secretary and Head of Internal Audit

Sl. % of share as on
Name Number of Shares
No. June 30, 2020

01. Chief Executive Officer and his spouse and minor children Nil Nil

02. Chief Financial Officer and his spouse and minor children Nil Nil

03. Company Secretary and his spouse and minor children Nil Nil

04. Head of Internal Audit and his spouse and minor children Nil Nil

Directors’ Report
iv) Shareholding of Senior Executives

Sl. Name Designation Number of % of shares as on

No. Shares June 30, 2020
01. Engr. A.K.M. Mostafa Kamal Executive Director (Procurement) 10,117 0.00254

02. Engr. Noor Mohammod Executive Director (Operation) Nil Nil

03. Engr. Jagodish Chandra Mandol Executive Director (Engineering) Nil Nil

04. Engr. S.M. Habibur Rahman CE, Development and Projects Nil Nil

05. Engr Zulfiquar Tahmid CE (Planning & Design) Nil Nil

v) Shareholders Holding 10% or more voting right

% of shares as on
Name Number of Shares June 30, 2020
Bangladesh Power Development Board 263,793,834 66.35

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vi) Twenty Largest Shareholders as on June 30, 2020
Sl. Name of the Shareholder Category Number of % of total Share
no. Shares held outstanding
1 Bangladesh Power Dev. Board Sponsor 263793834 66.351577
2 ICB Company 16166390 4.066302
3 Investment Corp. Of bangladesh Company 14484919 3.643365
4 Bangladesh Fund Company 7077000 1.780065
5 AB Bank Ltd. Company 7023759 1.766673
6 Dhaka Electric Supply Authority (DESA) Sponsor 5072954 1.275991
7 ICB Unit Fund Company 4316535 1.085730
8 Pubali Bank Securities Limited Company 3008603 0.756748
Directors’ Report

9 Shanta Holdings Limited Company 2220352 0.558481

10 Shahjalal Islami Bank Sec. Ltd. Company 2178208 0.547881
11 ICB BOND Company 2170661 0.545982
12 ICB AMCL UNIT FUND Company 1940309 0.488042
13 Md. Shahjahan Mollah Individual 1827782 0.459739
14 Shahjalal Islami Bank Ltd. Company 1750000 0.440174
15 Sonali Bank Limited Company 1668720 0.419730
16 Premier Bank Ltd (Islamic Bank) Company 1438399 0.361798
17 Md. Nurul Islam Mollah Individual 1359449 0.341940
18 Altap Hossen Individual 1273665 0.320363
19 Agrani Equity & Invest. Ltd. Company 1214945 0.305593
20 Aibl Capital Management Ltd. Company 1194033 0.300333
Total 34,11,80,517 85.82

Annexure III: Attendance of the Audit Committee meeting

Audit Committee meeting and Attendance during the year ended on June 30, 2020.
Sl. Name of the Directors Meeting held No. of meeting attended
no. while a member in person/alternates
Mr. A.K. M. Humayun Kabir
01. 02 02
(Till 22/09/2019)
Dr. Shah Md. Helal Uddin
02. 12 12
(From 23/09/2019)
Engr. Rabiul Hasnat
03. 14 14
(Till 25/10/2020)
Md. Saiful Islam
04. (From 25/10/2020) Nil Nil

05. Mr. Md. Anwarul Islam 14 14

06. Mr. S. M. Zamil Hussain
13 13
(Till 23/06/2020)

07. Md. Atiqur Rahman

(From 24/06/2020) 01 01

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Annexure III (b): Attendance of the Nomination and Remuneration Committee meeting
Audit Committee meeting and Attendance during the year ended on June 30, 2020.
Sl. Meeting held No. of meeting attended
no. Name of the Directors while a member in person/alternates
01. Mr. Mohammad Alauddin 1 1
02. Md. Nazmus Sadat Salim 1 1
03. Dr. S. Shahnawaz Ahmed 2 2
04. Mr. Md. Rokon-ul-Hasan 2 2
05. Engr. Ataul Mahmud 2 2
06. Mr. S. M. Zamil Hussain 2 2

Directors’ Report

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Event
Highlights

000
 ANNUAL REPORT 2020

State Minister of MoPEMR inaugurated Foundation Training Course of DESCO at BPMI

Foundation Training Course Opening Ceremony of Newly Recruited Officers of DESCO at BPMI

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Floral Reception to Newly Appointed Power Secretary Md. Habibur Rahman by DESCO

Mujib Corner inauguration by Ex. Power Secretary Dr. Sultan Ahmed at DESCO Head Office

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Mujib Corner at DESCO Head Office

DESCO Board Chairman and Executive Directors infront of Mujib Corner at DESCO Head Office

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Meeting with Ex. Power Secretary Dr. Sultan Ahmed

Dua Mahfil on 15 August, 2020 National Mourning day

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Tree Plantation on 15 August, 2020 National Mourning day

Holy Quran recitation on 15 August, 2020 National Mourning day

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National Flag lifting on 26 March National Independence Day

Discussion on 26 March National Independence Day

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Electric Cable Underlying Works in DESCO Area

MoU Signing ceremony between DESCO and Police Officers

Housing Society at RAB Headquarters

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Ceremony of National Integrity Awards-2020

Visit on Construction Site

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Visit on Grid Augmantation Project

Substation Maintenance Works

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Transformer Maintenance Works

Fire fighting Training Program

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DESCO officials at Foreign Training Course in Malaysia

In-house Training Program with Bir protik Kazi Sazzad Ali Zahir at DESCO

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In-house training at Desco

In-house Training Program at DESCO Computer Lab

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One Point Service Delivery Centre at DESCO

N95 Mask Handover to Kuwait Maitree Hospital

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N95 Mask Handover to National Gastroliver Hospital

N95 Mask Handover to Kurmitola General Hospital

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N95 Mask Handover to Govt. Employee Hospital

Relief Distribution by DESCO Board Director Engr. Ataul Mahmud during COVID-19 pandemic
at Basail Upazila under Tangail District
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Relief Distribution by DESCO Board Director Md. Anwarul Islam during COVID-19 pandemic
at Gomastapur Upazila under Chapai Nawabganj District

Relief Distribution by DESCO Board Director Md. Anisur Rahman during COVID-19 pandemic
at Banaripara Upazila under Barishal District
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Moments
with the
hon’ble
shareholder
ANNUAL REPORT 2020

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AUDITORS’
REPORT
ANNUAL REPORT 2020

Rahman Mostafa Alam & Co.

Chartered Accountants I N PA C T
INTERNATIONAL
Solution....Begins A F F I L I AT E

Independent Auditors’ Report

To the Shareholders of
Dhaka Electric Supply Company Limited (DESCO)
Report on the Audit of the Financial Statements
Qualified Opinion
We have audited the financial statements of Dhaka Electric Supply Company Limited (DESCO)(the
Company), which comprise the Statement of Financial Position as at June 30, 2020, Statement of Profit
or Loss and Other Comprehensive Income Statement of Changes in Equity and Statement of Cash
Flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies and other explanatory information disclosed in notes 1 to 51and
Annexure-A to B.
In our opinion, except for the effect of the matter described in the basis for Qualified Opinion section of
our report, the accompanying financial statements present fairly, in all material respects, the financial
position of the company as at June 30, 2020, and its financial performance and its cash flows for the
year then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies
Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and regulations.
Basis for Qualified Opinion
1. In the year 2013 an amendment has been made in section-232 of Labor Law-2006. Due to the
amendment DESCO requires to maintain Workers Profit Participation Fund (WPPF). The company
approves the requirement in this year and makes provision for 2017-18 to 2019-20. But the
company didn’t make provision for the years 2013-14 to 2016-17 which we have calculated
amounting Tk. 201,366,278. As a result the company understates its liability by the same amount.
2. As per Labor law- 2006 (amendment 2013) Section 234 (1) (b), an entity should pay amount of
WPPF within 9 month of the close of every year. But the company did not pay amount of WPPF
Tk. 99,493,608.
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditors’ Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company in
accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for
Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our
audit of the financial statements in Bangladesh, and we have fulfilled our other ethical responsibilities
in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our qualified opinion.

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Our key audit matters
Risk Our response to the risk
Capital Work-in- Progress (CWIP)
Refer note no. 4 to the Statement of Financial Position
Capital work in progress pre stage of Our procedure includes:
capitalization of Property, plant and Control test: testing the effectiveness of the entity’s control
equipment (PPE). Capitalization of around the recording and re-assessment of the amount of
expenses and cost of goods are in capitalization and transferred to PPE.
some extend judgmental in nature.
Test of details: obtaining supporting documents of
Moreover, transfer of capital work in capitalization transaction recorded either side of the year and
progress to PPE is also judgmental debit notes issued after the year end to determine whether
requires estimation. the amount recorded in correct period.
Test the advance adjustments and notes of transfer from
CWIP to PPE and costing, date etc. thereof.
Critically analyze journal entries posted during the year to
identify unusual items
Assessing disclosure: considering the adequacy of the
entity’s disclosure regarding CWIP.
Our result: the result of our testing is satisfactory and we
considered the capitalization cost, expenses and the amount
transferred to PPE recognized to be acceptable and recorded
in correctly.

Income tax
Refer note no. 39.01 and 39.02 to the Statement of Financial Position
The company has different items of
income, assets and provisions which
requires significant judgment for
both in current tax and deferred tax
calculation.
Our procedure includes:
Control test: testing the effectiveness of the entity’s control
around the recording and re-assessment of the amount of
tax expenses and related assets and liabilities.
Test of details: obtaining supporting documents, checked
calculation and challenged the amount as per our knowledge
of corporate taxation both for current and deferred portion.
Assessing disclosure: considering the adequacy of the
entity’s disclosure regarding tax.
Our result: the results of our testing were satisfactory and we
found the level of tax provisioning is acceptable.

Long term Loan (ADB, GOB, AIIB, JICA)

Refer note no.13 and 22 to the Statement of Financial Position
Long term loans taken from Our procedure includes:
international financial institution and
Control test: testing the effectiveness of the entity’s control
from the government under various
around the recording of loan, interest and repayments.
terms and conditions. Foreign
currency loan requires calculation Test of details: obtaining supporting documents of loan
considering the exchange rate, taken, utilization of loan, bank statements and transaction

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applicable interest rate, repayment
time and fund utilization makes it
complex audit issue.
recorded either side of the year and credit notes issued after
the year end to determine whether the amount recorded in
correct period.
Test the exchange rate applied for recording loans and
repayments.
Test interest rates application, calculation and repayments for
carrying amount and current and non-current distinguish.
Critically analyze journal entries posted during the year to
identify unusual items
Assessing disclosure: considering the adequacy of the
entity’s disclosure regarding Loan.
Our result: the result of our testing is satisfactory and we
considered the carrying amount of loan recognized to be
acceptable and recorded in correctly.

Responsibilities of Management and Those Charged with Governance for the Financial Statements
and Internal Controls
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with IFRSs, the Companies Act 1994, the Securities and Exchange Rules 1987 and other
applicable laws and regulations and for such internal control as management determines is necessary
to enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting
process.
Other Information
Management is responsible for the other information. The other information comprises all of the
information in the Annual report other than the financial statements and our auditors’ report thereon.
The directors are responsible for the other information.
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information; we are required to report that fact. We have nothing to report in this regard.

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Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control;
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances;
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management;
Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditors’ report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditors’ report. However, future events or conditions may cause the
Company to cease to continue as a going concern;
Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditors’ report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.

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Report on other Legal and Regulatory Requirements
In accordance with the Companies Act 1994, the Securities and Exchange Rules 1987 and relevant
notifications issues by Bangladesh Securities and Exchange Commission, we also report that:
a) We have obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purpose of our audit and made due verification thereof;
b) In our opinion, proper books of accounts, records and other statutory books as required by law
have been kept by the Company so far as it appeared from our examinations of those books;
c) The Statement of Financial Position, Statement of Comprehensive Income, Statement of Changes
in Equity and Statement of Cash Flows of the Company together with the annexed notes dealt
with by the report are in agreement with the books of account and returns; and
d) The expenditure was incurred for the purpose of the Company’s business.
The engagement partner on the audit resulting in this independent auditors’ report is Md.
Anwaruzzaman FCA.

Dated: Dhaka Rahman Mostafa Alam & Co.

October 22, 2020 Chartered Accountants

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 ANNUAL REPORT 2020
DHAKA ELECTRIC SUPPLY COMPANY LIMITED (DESCO)
Statement of Financial Position
As at June 30, 2020
Amount in Taka
Particulars Notes
June 30, 2020 June 30, 2019
ASSETS *Restated
Non-current Assets 40,585,729,350 37,745,718,856
Property, Plant and Equipment 02.00 22,150,701,332 20,914,530,962
Intangible Assets 03.00 93,234,096 110,549,698
Capital Work-in-progress 04.00 18,341,793,922 16,720,638,196
Current Assets 30,117,446,368 27,757,945,586
Stores and Spares 05.00 7,087,670,344 3,696,619,139
Accounts Receivable 06.00 6,067,376,813 4,809,724,852
Advances and Security Deposits 07.00 717,287,891 976,694,576
Advance Income Tax 08.00 1,272,356,002 1,101,771,861
Investment in FDR 09.00 9,400,285,454 12,162,653,691
Cash and Cash Equivalents 09.01 5,572,469,864 5,010,481,467
Total Assets 70,703,175,717 65,503,664,442
EQUITY AND LIABILITIES
Capital and Reserves 18,589,300,583 18,378,131,699
Share Capital 10.00 3,975,698,040 3,975,698,040
GOB Equity 11.00 5,926,920,000 5,694,120,000
Retained Earnings 12.00 8,686,682,543 8,708,313,659
Long-term Liabilities 33,913,532,799 32,038,702,364
Long Term Loans (ADB ,GOB ,AIIB & JICA) 13.00 24,332,690,791 22,889,851,264
Deferred Tax Liability (*Restated) 14.00 2,587,027,672 2,356,998,912
Due to DESA / DPDC (for assets taken over) 15.00 3,840,410,313 3,840,410,313
Consumer Security Deposits 16.00 3,125,080,093 2,951,441,875
Lease Liability (operating lease) 17.00 28,323,929 -
Current Liabilities 18,200,342,334 15,086,830,379
Accounts Payable 18.00 6,383,646,601 7,301,972,681
Creditors for Goods/Works 19.00 937,618,707 216,192,188
Others liabilities 20.00 3,837,288,426 3,593,421,078
Liabilities for Expenses 21.00 903,503,600 510,600,061
Current Maturity of Long-term Loans 22.00 531,940,185 644,052,512
Accrued Interest on Loans 23.00 3,382,932,601 2,631,571,786
Workers Profit Participation Fund (WPPF) 24.00 142,306,595 99,493,608
Provision for Income Tax (*Restated) 25.00 260,110,605 89,526,464
Loan under Secured Over Draft 26.00 1,820,995,013 -
Total Equity and Liabilities 70,703,175,717 65,503,664,442
Net Assets Value Per share (NAV) 48.00 46.76 46.23
*Prior years figure have been restated. Details disclosed in Note no. 8, 14, 20 & 25
The annexed notes from 1 to 51 and Annexure-A and B form an integral part of these Financial Statements.

Company Secretary Executive Director (F&A) Director Managing Director Chairman

Signed in terms of our separate report of even date.

Dated: Dhaka Rahman Mostafa Alam & Co.

October 22, 2020 Chartered Accountants

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ANNUAL REPORT 2020
DHAKA ELECTRIC SUPPLY COMPANY LIMITED (DESCO)
Statement of Profit or Loss and Other Comprehensive Income
For the year ended June 30, 2020
Amount in Taka
Particulars Notes
July 01, 2019 to July 01, 2018 to
June 30, 2020 June 30, 2019
*Restated
Distribution Revenue 4,323,577,620 4,277,639,318
Energy Sales (Net of VAT) 27.00 39,423,939,203 39,860,854,298
Less: Energy Purchase (including wheeling charge) 28.00 35,100,361,583 35,583,214,980
Other Operating Revenue 29.00 634,239,074 892,514,138
Total Operating Revenue 4,957,816,694 5,170,153,456
Less: Cost of Energy Sales 1,447,222,888 1,535,648,544
Direct Operating Expenses 30.00 248,238,117 298,504,417
Depreciation (Direct) 31.00 1,198,984,771 1,237,144,127
Gross Profit 3,510,593,806 3,634,504,912
Less: Operating Expenses 2,545,036,938 2,270,679,161
Administrative Expenses 32.00 431,804,471 359,053,398
Employee Expenses 33.00 2,016,465,545 1,841,091,383
Bad Debts Expenses 06.02 4,280,828 (506,583)
Depreciation (Indirect) 31.00 92,486,093 71,040,963
Add :Other Operating Income: 1,006,706,699 939,353,055
Interest Income 34.00 940,761,015 901,317,581
Miscellaneous Income 35.00 65,945,684 38,035,474
Total Operating Profit / (Loss) 1,972,263,568 2,303,178,806
Add: Non-operating Income/(Expense) (1,073,190,831) (920,235,166)
Finance cost 36.00 (981,984,580) (760,681,694)
Exchange Fluctuation Gain / (Loss) 37.00 (91,206,250) (159,553,472)
Net Profit Before contribution to WPPF 899,072,737 1,382,943,640
Less: Contribution to WPPF 38.00 42,812,987 67,179,176
Net Profit Before Tax 856,259,750 1,315,764,464
Income Tax (400,612,901) (240,963,912)
Current Tax Expenses 39.01 (170,584,141) (89,526,464)
Deferred Tax Expenses 14.00 (230,028,760) (251,596,527)
Prior year Tax 41.01 - 100,159,079
Net Profit after Tax 455,646,848 1,074,800,552
Basic Earnings per Share 40.00 1.15 2.70

*Prior years figure have been restated. Details disclosed in Note no. 28 & 32
The annexed notes from 1 to 51 and Annexure-A and B form an integral part of these Financial Statements.

Company Secretary Executive Director (F&A) Director Managing Director Chairman

Signed in terms of our separate report of even date.

Dated: Dhaka Rahman Mostafa Alam & Co.

October 22, 2020 Chartered Accountants

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 DHAKA ELECTRIC SUPPLY COMPANY LIMITED (DESCO)
Statement of Changes in Equity
For the year ended June 30, 2020

Particulars Share Capital GOB Equity Retained Earnings Total

Balance as on July 01, 2019 3,975,698,040 5,694,120,000 8,708,313,659 18,378,131,699
Adjustment of application of lease accounting (IFRS 16) (194,200) (194,200)
GOB Equity added during the year - 232,800,000 - 232,800,000
Net profit for the year - - 455,646,848 455,646,848
Cash Dividend - - (477,083,765) (477,083,765)
Balance as on June 30, 2020 3,975,698,040 5,926,920,000 8,686,682,543 18,589,300,583

Particulars Share Capital GOB Equity Retained Earnings Total

Balance as on July 01, 2018 3,975,698,040 3,940,140,000 8,032,273,048 15,948,111,088
GOB Equity added during the year - 1,753,980,000 - 1,753,980,000
Net profit for the year - - 1,074,800,552 1,074,800,552
Priors year's adjustment - - (1,190,137) (1,190,137)
Cash Dividend - - (397,569,804) (397,569,804)
Balance as on June 30, 2019 3,975,698,040 5,694,120,000 8,708,313,659 18,378,131,699

The annexed notes from 1 to 51 and Annexure-A and B form an integral part of these Financial Statements.

Company Secretary Executive Director (F&A) Director Managing Director Chairman

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ANNUAL REPORT 2020
ANNUAL REPORT 2020

DHAKA ELECTRIC SUPPLY COMPANY LIMITED (DESCO)

Statement of Cash Flows
For the year ended June 30, 2020

Amount in Taka
Particulars Notes
July 01, 2019 to July 01, 2018 to
June 30, 2020 June 30, 2019
A. Cash Flows from Operating Activities:
Received from Energy Sales 38,802,016,188 39,582,577,975
Collection of Govt. Duty, VAT & Tax 2,503,832,137 2,468,354,979
Received from Other Operating & Non Operating Activities 999,378,527 1,005,898,628
Received against Financial Income 1,007,333,433 827,607,342
Payment for Energy Purchase (36,051,956,463) (34,562,171,198)
Payment for Employee Expenses (1,998,371,776) (1,841,091,383)
Payment for Administrative & Other Expenses (966,950,080) (1,216,354,818)
Payment for Interest on Long Term Loan (194,862,653) (219,980,954)
Advance Income Tax Paid (170,584,141) (440,680,308)
Investment in FDR 2,762,368,237 (1,674,666,916)
Payment for Govt. Duty, VAT & Tax (2,278,441,470) (1,385,832,020)
Net Cash Flows from Operating Activities 4,413,761,939 2,543,661,326
B. Cash Flows from Investing Activities:
Acquisition of Property & Plant (281,897,418) (275,225,326)
Acquisition of Stores & Equipment (6,465,603,592) (7,750,094,782)
Net Cash used in Investing Activities (6,747,501,010) (8,025,320,108)
C. Cash Flows from Financing Activities:
Loan Received (Including Short Term over draft) 3,919,452,960 6,719,085,449
Dividend Paid (550,231,701) (127,143,597)
Long Term Loan Paid (647,132,010) (757,829,617)
Consumer Security Deposits Received 173,638,218 245,961,156
Net Cash Flows from Financing Activities 2,895,727,467 6,080,073,392
Cash and Cash equivalents increase/(decrease) during the year 561,988,396 598,414,609
Cash and Cash equivalents at the beginning of the year 5,010,481,467 4,412,066,858
Cash and Cash Equivalents at the End of the Year 5,572,469,864 5,010,481,467
Net operating cash flows per share (NOCFPS) 49.01 11.10 6.40

Company Secretary Executive Director (F&A) Director Managing Director Chairman

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 ANNUAL REPORT 2020
DHAKA ELECTRIC SUPPLY COMPANY LIMITED (DESCO)
Notes To the Financial Statements
As at and for the year ended June 30, 2020

1.00 Legal Status & Nature of the Company, Significant Accounting Policies and other Relevant Information:
1.01 Legal Status:
Dhaka Electric Supply Company Limited (DESCO) was incorporated as a Public Limited Company by
shares, on 03 November, 1996 with an Authorized Capital of TK.5,000 million divided into 500 million
ordinary shares of Tk.10 each as per SEC notification no SEC/CM RRCD/2009-193/109, dated:
15/09/2011. The shares of the Company have been listed and are being traded in Dhaka Stock
Exchange (DSE) and Chittagong Stock Exchange (CSE) since 2006.
1.02 Principal Activities:
The main objective of the Company is to distribute electricity to its consumers effectively and
efficiently. DESCO started its operation from 24 September 1998 in Mirpur area and as per Govt.
decision the operation of greater Gulshan area was added from 09 April 2003. Further on 04 March
2007 operation of Tongi Area was also handed over from DESA to the Company.
1.03 Basis of Accounting:
These Financial Statements prepared under the historical cost convention and in accordance with
International Accounting Standerds (IASs), International Financial Reporting Standards (IFRSs), except
where otherwise mentioned, and are in compliance with the relevant requirements of the Companies
Act, 1994, the Securities and Exchange Rules 1987 and other applicable laws and regulations.
1.04 Property, Plant & Equipment:
i) Valuation of Property, Plant & Equipment Purchased by DESCO
All property, plant & equipment purchased by DESCO are recorded at cost considering its purchase
price and any directly attributable cost of bringing the assets to working condition for intended use
inclusive of inward freight, duties and non-refundable taxes.
DESCO management already assigned M/S Hussain Farhad & Co. regarding Asset Valuation. The
valuer firm continue their assigned job.
ii) Valuation of Assets taken over from DESA
Property, plant & equipment taken over from the Dhaka Electric Supply Authority (DESA) in the Mirpur
area have been finalized at Tk. 1,27.12 Core as per joint consultant report and it has already been paid. The
value of Transferred assets of Gulshan and Uttara area is determined and accepted for Tk. 384,04,10,313/-
by both DESCO & DPDC. Valuation of building and equipment is Tk. 339,96,45,373/- only and Tk.
44,07,64,940/- is against land. Value against Building and Line & Equipment will be paid on installment as
per approval of board and Value against land will be paid after finalization of ownership of land.
Depreciation:
Depreciation is charged at straight-line method at rates varying from 2% to 20% depending on
category and economic life of the assets as under:
Categories Rate (%)
Land & Land Development 0% (Nil)
Building & other Constructions 2.50%
Distribution Equipment & Cables 3%-10%
Distribution Line 3%-10%
Furniture & Fixtures 10%
Office Equipment 15%-20%
Motor Vehicles 15%

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iii) The company has acquired 0.1532 acres land from National Housing Authority (NHA) at Tk. 7.45 lac
on 99 years lease in the year 2005. The amortization of the cost of this land would have been Tk.
7,529/- per year, which would not have any ‘material impact’ on the profitability of the company,
hence no amortization has been considered.
iv) Depreciation of an asset begins when it is available for use, ie. when it is in the location and
condition necessary for it to be capable of operating in the manner intended by management.

1.05 Impairment:
The company tested for impairment of assets and the management of the company could not found
any indication of impairment loss of assets.
1.06 Stores and Spares:
Stores and spares have been stated at the lower of cost and net realizable value in accordance with
IAS - 2 “Inventories”, after making due allowance for any obsolete or slow moving items. The cost of
inventories is assigned by using weighted average cost method.
1.07 Foreign Currency Translation:
Foreign currency transactions are translated into Taka at exchange rates prevailing on the respective
dates of transaction, while foreign currency monetary liabilities at the end of the year are reported at
the rate prevailing on the balance sheet date. Exchange losses/gain arising out of the said conversion
is recognized as expense/ income for the year in accordance with IAS -21.
1.08 Revenue Recognition:
Under IFRS-15, the entity should recognized revenue when (or as ) a performance obligation is
satisfied, i.e.: when 'control' of the goods or service underling the particular performances obligations
is transferred to the customer.
IFRS-15 is a 5-steps approach to revenue reorganization:
Step 1: Identify the contract(s) with a customer;
Step 2 : Identify the performance obligations in the contract;
Step 3 : Determine the transaction price;
Step 4 : Allocate the transaction price to the performance obligations in the contract;
Step 5 : Recognize revenue when (or as) the entity satisfies a performance obligations.
DESCO is a distribution company of electricity. The company distributes electricity as per the tarrif
rate fixed up by Bangladesh Energy Regulatory Commision (BERC). The company purchase electricity
from BPDB. Margin between tarrif sales and engergy purchase cost is the companies distribution
revenue.
The Company (DESCO)) recognizes revenue of energy on issue of bills to the consumers for
consumption of energy, demand charge, service charge, meter and transformer rent.
1.09 Statement of Cash Flows:
Statement of Cash Flows is prepared principally in accordance with IAS - 7 “Statement of Cash Flows”
and the cash flow from operating activities has been presented under the direct method as required
by the Securities and Exchange Rules 1987 and considering the provisions that “Enterprises are
encouraged to Report Cash Flows from Operating Activities using the Direct Method”.
1.10 Accounts Receivable:
Accounts Receivable for energy is stated at realizable amount less provision for doubtful debts. The
company provides for doubtful debts @ 0.5% of Accounts Receivable against consumers balance
standing at the balance sheet date, as decided by the Board of Directors at the meeting held on
17.04.2005.

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1.11 Related Party Transaction:
The company in normal course of business carried out a number of transactions with
directors/entities that fall within the definition of related party contained in International Accounting
Standard (IASs) 24: related party discloser. The discloser relating to related parties have been shown
in note 40.00
1.12 Earnings per Share:
(a) Basic Earnings per Share (BEPS): Basic Earnings per share has been calculated by dividing the
earnings attributable to the number of shares (ordinary) outstanding during the year. However, GOB
Equity amounts has not been considered for determining BEPS and no shares have been allotted
against these receipts.
(b) Weighted average Number of shares Outstanding during the year: This represents the number of
ordinary shares Outstanding at the beginning of the year plus the year the numbers of ordinary
shares issued during the year multiplied by a time weighting factor. The time weighting factor is the
number of days the specific shares are outstanding as a proportionate of the number of days in the
year.
(c) Diluted Earnings Per Share: No diluted Earnings per share was required to be calculated for the
year under review as there is no scope for dilution of Earnings per share for the year.
1.13 Retirement Benefit Plans:
(a) Contributory Provident Fund: The Company maintains a Contributory Provident Fund (CPF),
recognized by the National Board of Revenue (NBR), under which the employees contribute 10% of
their basic salary to the fund. The company contributes an equal amount. The fund is managed and
operated by a Board of Trustees. The net earnings of the fund are apportioned to the Fund member's
accounts at the end of the year.
(b) Gratuity: The Company maintains a Gratuity Fund, approved by the NBR under Income Tax
Ordinance, 1984. Under the Gratuity Scheme, the company pays to a retired employee, having
completed at least 3 (three) years of service, at the rate of two and half months’ last drawn basic
salary for every completed year of service. The company pays to the fund for the liability at the end of
each year considering the number of years of service of employees eligible under the scheme.
The liability shown in the Balance Sheet does not reflect the present value of the expected payments
by the company's retirement plan to existing and past employees attributable to the service already
rendered and is therefore not in compliance with IAS - 26.
(c) Group Insurance: The Company has taken Group Endowment policy for its employees and
provision for the premium on the coverage is made annually.
(d) Worker’s Profit Participation Fund: In light of the labor law 2006 (amended in 2013) worker’s profit
participation fund has been implemented in DESCO from Financial Year 2017-18 and 2018-19. Each and
every Stakeholder under this law has got benefits accordingly.
1.14 Taxation:
(a) Current Tax: The tax currently payable is based on taxable profit for the year. Taxable profit differ
from net profit as reported in the income statement because it excludes items of income or expenses
that are taxable or deductible in other years and it further excludes items that are never taxable or
deductable. The Company’s liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the balance sheet date.
(b) Deferred Tax Liability: The Company accounts for deferred tax liability as per International
Accounting Standard (IAS-12). Deferred Tax is provided using the liability method for all temporary
timing difference arising between the tax base of assets and liabilities and their carrying value for
financial reporting purposes. An appropriate proportion of provision has been considered in calculating
temporary timing difference. Tax rate prevailing at the balance sheet date is used to determine
deferred tax liability.

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1.15 Borrowing Cost:
Interest on borrowed funds for ongoing projects is charged as expense.
1.16 Reporting Currencies:
The financial statements presented are stated in Bangladesh Taka and rounded off to the nearest
integer.
1.17 Reporting Period:
The accounting year of the company covers the year ended from July 01, 2019 to June 30, 2020.

1.18 Restatements:
i) Unabsorbed depreciation had not been considered in prior years in the calculation of deferred tax
and current tax which have been considered during this year. Hence prior years figure of deferred tax
liabilities and provision to income tax have been restated to conform with current year presentation.
ii) Tax Deducted at souce (Tk. 800.00), Advance Income Tax (Tk. 800.00), FDR interest (Tk. 4,159,270.98),
Interest receivable on FDR (Tk. 4,159,270.98), Staff Training (Tk. 62,400), others liability( Tk.
23,659,784.98), conveyance (Tk. 142,036.00), Recruitment expenses (Tk. 290,000), office rent (Tk.
289,964.00), Entertainment (Tk. 95,000), Energy purchase( Tk. 22,437,484.98), Repair and maintanace
of non operating asset (Tk. 342,900) have been understated inadvertantly in previous year (2018-19)
becouse of wrong posting.
Hence previous years figure have been restated to rectify the error.

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 ANNUAL REPORT 2020
Amount in Taka
Notes Particulars
June 30, 2020 June 30, 2019

02.00 Property, Plant & Equipment:

Cost
Opening Balance as at July 01, 2019 31,683,764,281 29,245,160,781
Less: Disposal During the year (617,990) (199,501,516)
31,683,146,291 29,045,659,265
Additions during the year (2.01) 2,507,420,819 2,638,105,016
Closing Balance as at June 30, 2020 34,190,567,110 31,683,764,281
Depreciation
Opening Balance as at July 01, 2019 10,769,233,319 9,470,004,809
Less: Adjustment for disposals (Note 2.01) (364,294) (127,054)
10,768,869,025 9,469,877,755
Charged for the year and including prior year adjustment. 1,270,996,752 1,299,355,564
Closing Balance as at June 30, 2020 12,039,865,777 10,769,233,319
Written Down Value (WDV) 22,150,701,332 20,914,530,962
02.01 Details of property, plant & equipment and depreciation are shown in Annexure-A.
03.00 Intangible Asset
Opening Balance as at July 01, 2019 140,092,856 60,231,153
Less: Disposal of Office equipment - -
140,092,856 60,231,153
Additions during the year (2.01) 3,158,512 79,861,703
Closing Balance as at June 30, 2020 143,251,368 140,092,856
Amortization
Opening Balance as at July 01, 2019 29,543,158 20,713,632
Less: Adjustment for disposals (Note 2.01) - -
29,543,158 20,713,632
Charged for the year and including prior year adjustment. 20,474,114 8,829,526
Closing Balance as at June 30, 2020 50,017,272 29,543,158
Written Down Value (WDV) 93,234,096 110,549,698
04.00 Capital Work -in- Progress:
Construction of Workshop Building & Others (Note 4.01) 184,374,010 104,127,477
33/11KV OH/UG Cable Line (Note 4.02) 78,122,810 55,595,903
33/11Kv Sub- Station - Turnkey Project (Note 4.03) - 808,247,631
132/33/11Kv Grid Sub- Station - Turnkey Project (Note 4.04) 5,543,410,581 4,995,968,454
132/33/11Kv UG Line Construction-Turnkey Project (Note 4.05) 1,941,045,911 1,935,984,233
33/11 KV 24 Nos Substation Augm. by Siemens Bd. Ltd (Note 4.06) 3,737,595,455 3,572,269,367
132/33/11 KV Grid Augm.( Bashundhara & Uttara)Hyosung (Note 4.07) 2,013,472,776 1,922,897,740
33 KV O/H Line converted to 33 KV UG cable (Note 4.08) 4,028,573,780 3,147,860,071
New SCADA System (Initial cost) (Note 4.09) 147,380,688 120,192,917
132/33/11Kv Grid Sub- Station - Turnkey Project (Note 4.10) 313,243,075 15,264,509
132/33/11 KV Grid Augm.( Tongi) Siemens (Note 4.11) 339,208,507 42,229,894
Software (Customer management) (Note 4.12) 339,938 -
Smart Card Based (Prepaid Meter) (Note 4.13) 1,700,625 -
GIS Mapping APP (Note 4.14) 13,325,767
Total Capital Work - In - Progress 18,341,793,922 16,720,638,196

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ANNUAL REPORT 2020
Amount in Taka
Notes Particulars
June 30, 2020 June 30, 2019
04.01 Construction of Workshop Building & Others
Opening Balance as at July 01, 2019 104,127,477 85,913,551
Addition during the year 120,140,678 68,532,032
224,268,155 154,445,583
Transferred to Fixed asset during the year 39,894,145 50,318,106
Closing Balance as at June 30, 2020 184,374,010 104,127,477
This includes as Work In Progress (WIP) of DESCO Head Office Building (Consultancy Work) & Civil work ,
Central store at Mirpur area. Satarkul, Mohakhali (DOHS), Uttara, Banani-1, Tongi office Building, Purbachal
S/S Building, The total contract price above works is Tk.213.71 million
04.02 33/11KV OH/UG Cable Line
Opening Balance as at July 01, 2019 55,595,903 26,786,250
Addition during the year 66,808,009 55,595,903
122,403,912 82,382,153
Transferred to Fixed asset during the year 44,281,102 26,786,250
Closing Balance as at June 30, 2020 78,122,810 55,595,903
33 kv, 11 KV overhead & under ground cable line construction works are in progress at Mirpur, Gulshan and
Tongi circle respectively. The total contract price of the works is Tk.493.71million.
04.03 33/11Kv Sub- Station - Turnkey Project
Opening Balance as at July 01, 2019 808,247,631 807,321,281
Addition during the year - 926,350
808,247,631 808,247,631
Transferred to Fixed asset during the year 808,247,631 -
Closing Balance as at June 30, 2020 - 808,247,631
The Company signed an agreement with Ideal Enterprise to implement 8(Eight) nos. 33/11Kv Sub
-Stations of which 07 (Seven) nos Sub Stations have already been completed and transferred to Fixed
Asset and Energypac to implement 04 (Four) nos 33/11Kv Sub -Stations under DESCO Funding. The total
contract price are Tk 1,503.31 & 805.00 million respectively.
04.04 132/33/11Kv Grid Sub- Station - Turnkey Project
Opening Balance as at July 01, 2019 4,995,968,454 3,668,197,802
Addition during the year 589,166,803 1,371,948,482
5,585,135,257 5,040,146,284
Transferred to Stores and Spares during the year 41,724,676 44,177,830
Closing Balance as at June 30, 2020 5,543,410,581 4,995,968,454

The Company signed an agreement with Hyosung Corporation to implement 05(Five) nos. 132/33/11Kv Grid
Sub -Stations under ADB , GoB & DESCO Funding. The total Contract price is USD 48.09 Million + BDT
779.04 million. The duration of the project has been extended one year due to the corona pandemic.
04.05 132/33/11Kv UG Line Construction-Turnkey Project
Opening Balance as at July 01, 2019 1,935,984,233 1,742,684,699
Addition during the year 17,406,922 194,863,496
1,953,391,155 1,937,548,195
Transferred to Stores and Spares during the year 12,345,244 1,563,962
Closing Balance as at June 30, 2020 1,941,045,911 1,935,984,233
The Company signed an agreement with LS Cable & System Ltd. for supply & installation (174 KM) 132KV
UG cable line on Trunky Basis under ADB , GoB & DESCO Funding. The total contract price is USD 17.61 Million
+ BDT 308.26 million.

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 ANNUAL REPORT 2020
Amount in Taka
Notes Particulars
June 30, 2020 June 30, 2019
04.06 33/11 KV 24 Nos Substation Augm. by Siemens Bd. Ltd
Opening Balance as at July 01, 2019 3,572,269,367 1,074,628,497
Addition during the year 165,396,088 2,497,640,870
3,737,665,455 3,572,269,367
Transferred to Fixed asset during the year 70,000 -
Closing Balance as at June 30, 2020 3,737,595,455 3,572,269,367
The Company signed an agreement with Siemens Ltd. India in Consortium with Siemens Bangladesh Ltd.
for Design, Supply, Installation & Commissioning of 24 no's 33/11KV Sub-stations on Turnkey Basis (14 Nos.
New & 10 Augmentation) under ADB , GoB & DESCO funding. The total contract price of Siemens ltd. (India)
is USD 25.81 Million+ Euro 9.72 Million + BDT 579.72 Million.
04.07 132/33/11 KV Grid Augm.( Bashundhara & Uttara) Hyosung
Opening Balance as at July 01, 2019 1,922,897,740 183,097,453
Addition during the year 90,575,036 1,739,800,287
2,013,472,776 1,922,897,740
Transferred to Fixed asset during the year - -
Closing Balance as at June 30, 2020 2,013,472,776 1,922,897,740
The Company signed an agreement with Hyosung Corporation for Augmentation & Rehabilitation of
132/33/11Kv Grid Sub -Stations at Uttara & Bashundhara under AIIB , GoB & DESCO Funding. The total
Contract price are USD 19.94 Million + BDT 185.61 million. The duration of the project has been extended
one year due to the corona pandemic.
04.08 33 KV O/H Line converted to 33 KV UG cable
Opening Balance as at July 01, 2019 3,147,860,071 396,932,227
Addition during the year 880,713,709 2,750,927,844
4,028,573,780 3,147,860,071
Transferred to Fixed asset during the year -
Closing Balance as at June 30, 2020 4,028,573,780 3,147,860,071
The Company signed an agreement with LS Cable & System Ltd. for supply, installation , up-grading and
conversion of existing 33KV Overhead lines into Underground cables (498 KM) on Trunky Basis under AIIB,
GoB & DESCO Funding. The total contract price is USD 28.38 Million + BDT 1430.57 Million. The duration of
the project has been extended by one year due to the corona pandemic.
04.09 New SCADA System (Initial Cost)
Opening Balance as at July 01, 2019 120,192,917 42,910,906
Addition during the year 27,187,771 77,282,011
147,380,688 120,192,917
Transferred to Fixed asset during the year - -
Closing Balance as at June 30, 2020 147,380,688 120,192,917
The Company signed an agreement with Hifab OY (Finland) in Association with Hifab International AB
(Sweden) & BCL Associated Ltd. (Bangladesh) for consultancy services for project management, supervision
and Implementation support for SCADA Project and the company signed an agreement with Siemens ltd.
India under ADB, GoB & DESCO Funding. The total contract price of Hifab OY (Finland) are EUR 1.32 Million +
BDT 39.45 Million & Total Contact price of Siemens (India) are USD 6.74 million & BDT 191.44 million
04.10 132/33/11Kv Dhaka Underground Substation Constriction project at Gulshan.
Opening Balance as at July 01, 2019 15,264,509 -
Addition during the year 297,978,566 15,264,509
313,243,075 15,264,509
Transferred to Fixed asset during the year - -
Closing Balance as at June 30, 2020 313,243,075 15,264,509

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ANNUAL REPORT 2020
The Company signed an agreement with 37 Bridge , Bangladesh for consultancy services for project
management, supervision and Implementation support and with TEPCO and TEPSCO for engineering service
consultant for construction of 132/33/11 KV UG Grid Substation building at Gulshan project under JICA, GoB
& DESCO Funding. Contact price of TEPCO and TEPSCO are JPY 712.14 million & BDT 200.04 million
(Excluding VAT & AIT)
04.11 132/33/11 KV Grid Augm.( Tongi) Siemens
Opening Balance as at July 01, 2019 42,229,894 -
Addition during the year 306,062,749 194,700,999
348,292,643 194,700,999
Transferred to Fixed asset during the year 9,084,136 152,471,105
Closing Balance as at June 30, 2020 339,208,507 42,229,894
The Company signed an agreement with Siemens Bangladesh ltd. for Augmentation & Rehabilitation of
132/33/11Kv Grid Sub - Stations at Tongi under DESCO Funding. The total Contract price are USD 1.62
million + Euro 1.73 million+BDT 26.71 million.
04.12 Software (Customer management)
Opening Balance as at July 01, 2019 - -
Addition during the year 339,938 -
339,938 -
Transferred to Fixed asset during the year - -
Closing Balance as at June 30, 2020 339,938 -
The Company signed an agreement with Technovista for development of Online Customer Management
System under own funding. The Total Contract Price is BDT Tk. 6.79 million.
04.13 Smart Card Based (Prepaid Meter)
Opening Balance as at July 01, 2019 - -
Addition during the year 1,700,625 -
1,700,625 -
Transferred to Fixed asset during the year - -
Closing Balance as at June 30, 2020 1,700,625 -
The Company signed an agreement with Hexing (China) for supply and installation of 2lac pcs of
Smartcard based prepaid meter. The supplier has already supplied the all required quantity and installed
30,000 pcs of prepaid meter. the total contact price of Hexing (China) is USD 9.27 million + BDT 17.01 million
04.14 GIS Mapping APP.
Opening Balance as at July 01, 2019 - -
Addition during the year 13,325,767 -
13,325,767 -
Transferred to Fixed asset during the year - -
Closing Balance as at June 30, 2020 13,325,767 -
The Company signed an agreement with Trident Techlab Pvt. Ltd. (India) In association with BEATS
Consulting services ltd.(BETS), Arc Bangladesh for design devlopment & Installation of multi platform
GIS-based application for the management of distribution network of DESCO for technical financial &
managerial benifits.Work order value USD 14,80,935.00 & BDT 33,84,75,182.00
05.00 Stores & Spares :
Stores & Spares (Note 5.01) 7,085,654,988 3,681,778,119
Stores in Transit (Note 5.02) 2,015,356 14,841,020
Total 7,087,670,344 3,696,619,139

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 ANNUAL REPORT 2020
Amount in Taka
Notes Particulars
June 30, 2020 June 30, 2019
05.01 Cost of Stores & Spares
Cable & Accessories 3,798,693,079 2,219,215,535
Pole & Pole fittings 358,962,780 352,151,325
Distribution transformers 170,656,764 167,820,941
Meter & Meter accessories 2,000,856,893 172,721,064
Sub-station equipment & spares 616,428,446 635,057,527
Tools, equipment & others 133,308,567 134,811,727
Furniture & Fixtures 751,288 -
Computer, Printer, Tonner & Others 5,997,171
Total: 7,085,654,988 3,681,778,119
05.02 This presented cost of materials, including L/C charge and Pre -Shipment- Inspection (PSI) expenses, paid
against imported materials for which post landing inspection (PLI) has not been completed.
05.03 Stores & spares have been valued at weighted average cost method.
06.00 Accounts Receivable:
Receivable from consumers -(Note 6.01) 5,386,870,146 4,392,670,478
Less: Provision for doubtful debts (Note 6.02) (106,943,662) (102,662,834)
Total Receivable from sales 5,279,926,483 4,290,007,644
Receivable from BPDB against Materials & Others (Notes 6.03) 57,462,286 58,269,111
Receivable from DPDC against Materials & Others (Notes 6.04) 308,814,859 60,270,323
Receivable from Govt Duty /VAT 80,353,171 -
Receivable from WZPDCL 1,197,161 1,197,161
Expenses recoverable from Employees 4,106,528 2,051,141
Interest Receivable on FDR 248,208,634 310,621,780
Receivable from United Trade Int. 17,222,383 17,222,383
Accounts Receivable - SREDA 806,825 806,825
Accounts Receivable - Licensing Board 806,825 806,826
Accounts Receivable-Income Tax for the FY-2013-14 68,471,658 68,471,658
Total Receivable: 6,067,376,813 4,809,724,852
06.01 Receivable from consumers are categorized as follows :
Government (Eqv. Month 2019-20: 6.39, 2018-19 : 5.39) 3,038,137,708 932,619,056
Semi- Government/Autonomous (Eqv. Month 2019-20: 3.22, 2018-19 : 2.34 1,530,955,152 16,363,478
Private (Eqv. Month 2019-20: 1.72, 2018-19 :1.45) 817,777,286 3,443,687,944
Average ( Eqv. Month 2019-20: 1.99 , 2018-19: 1.64) 5,386,870,146 4,392,670,478

06.02 Provision of Tk. (538,68,70,145.31- 352,87,02,237-28,71,14,418)=15710.53,490 /= 78,55,267.45/= has been

made this year @ 0.5% of the receivables amount outstanding at the Balance Sheet date , as per
company's policy.
This balance has been arrived at as under:
Opening Balance 99,088,395 100.0% 99,088,395 99,088,395
Add: Adjustment 1,571,053,490 0.50% 7,855,267 3,574,439
Total Cumulative Provision 106,943,662 102,662,834
Opening Balance as at July 01, 2019 102,662,834 103,169,417
Provision during the year 4,280,828 (506,583)
06.03 This balance has been arrived at as under: (BPDB)
Receivable from BPDB against materials supplied 55,472,107 55,472,107
Receivable from BPDB against advertising 1,990,179 2,797,004
57,462,286 58,269,111

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ANNUAL REPORT 2020
Amount in Taka
Notes Particulars
June 30, 2020 June 30, 2019
06.04 This balance has been arrived at as under: (DPDC)
Opening Balance Receivable from (Material) as at July 01, 2019 59,453,867 59,453,868
Receivable during this period against (Material) 248,544,537 816,455
Receivable others 816,455 -
Closing Balance as at June 30, 2020 308,814,859 60,270,323
07.00 Advances & Security Deposits:
A) Advances:
Against goods and services (Note 7.01) 100,033,698 173,084,806
Advance against Office rent 10,922,526 17,774,992
Advance to Rajuk against Land purchase (Note 7.02) 303,367,689 303,367,689
Advance to Eastern Housing Ltd (Note 7.03) 12,650,000 12,650,000
Protested Claim (For Vat Appeal in Tribunal) 3,508,138 3,508,138
Deferred/Prepaid Exp & Others ( Note 7.04) 58,996,703 92,059,565
Prepayment - Employees 28,812,080 23,400,487
Advance to - PGCB - 209,443,179
Advance to - BPDB 6,237,150 -
Advance to - DPDC 629,000 -
Advance to Bangladesh Power Management Inst. 5,272,872 -
Advance to Advocate Mahabubur Rahman & Jannat Sultana) 930,400 -
Advance to - Power Cell (ERP Software) 23,903,000 -
Advance to - Others 165,430 -
Sub-Total: 555,428,686 835,288,856
B) Security Deposits:
Telephone/ Mobile 731,671 123,731
Telephone Shilpha sangstha ltd against rent of store 5,000,000 5,000,000
Dhaka & Gazipur City Corporation (against road cutting) 143,586,266 124,832,569
Dhaka WASA 10,411 10,411
Central Depository of Bangladesh (CDBL) 500,000 500,000
Bangladesh Railway, Roads and Highway 7,100,000 7,100,000
Security Deposit - RDA Building & KDA Building 3,256,658 2,746,318
Security Deposit - Others 484,750 1,092,691
Security Deposit - Tangail Zela Samity 1,189,449 -
Sub-Total: 161,859,205 141,405,720
Total (A+B) 717,287,891 976,694,576
07.01 Advance includes Tk. 8.1 million to BPDB against SPC Pole & Tk.160.48 million paid to Telephone Shilpa
Sangstha Ltd against purchase of Pre-paid Meter and Tk. 4.32 million paid to Standard Asiatic Oil for
purchase of transformer oil.
07.02 Advance includes Tk. 43.34 million for Purbachal 250 million for Uttara Plot 10.03 million for Uttara Sector -
09 to Rajuk for Land purchase.
07.03 This amount includes paid as advance to Eastern Housing ltd. for land purchase at Pallabi Tk. 12.65 million.
07.04 This amount includes paid as advance Tk. 4.06 million for land deployment to Saju Enterprise, Tk.32.73
million paid to Mars Sindicate for constriction work at Tongi East and Tk. 19.84 million paid to Saju
enterprise & Desh Engineering for hired vacant land from Telephone Shilpa Sangstha.

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Amount in Taka
Notes Particulars
June 30, 2020 June 30, 2019
08.00 Advance Income Tax: *Restated
Income Tax paid for FY - 2015-16 242,891,810 242,891,810
Income Tax paid for FY - 2016-17 150,259,982 150,259,982
Income Tax paid for FY - 2017-18 267,938,960 267,938,960
Income Tax paid for FY - 2018-19 440,681,109 440,681,109
Income Tax paid for FY - 2019-20 (Note 8.01) 170,584,141 -
Closing Balance 1,272,356,002 1,101,771,861
08.01 Advance Income Tax paid during the year:
This arrived at as under:
Deducted at source (on interest of FDR & STD) 101,140,495 83,838,393
Deducted at source (on imported materials) 68,102,117 355,464,329
Income tax paid for FY 2019-20 1,341,529 1,378,387
170,584,141 440,681,109
09.00 Investment in FDR

Fixed Deposit Receipts (FDR) 9,400,285,454 12,162,653,691

9,400,285,454 12,162,653,691
Fixed Deposit Receipts include Tk.25.00 million (2017-2018) in ICB Islamic Bank Ltd. (former Oriental Bank
Ltd.) which is subject to phase wise withdrawal restriction imposed by Bangladesh Bank under the
reconstruction scheme. No amount has been realized during the year. As per Bangladesh Bank
reconstruction scheme balance amount will be realized by 2020.
Mentioning that, total FDR amounting Tk. 9,400,285,454 from which amounting Tk 3,648,168,118 lien against
Short tearm overdraft (SOD) loan.
09.01 Cash & Cash Equivalents:
Imprest cash with S&D divisions 2,030,698 1,936,808
Cash at banks (Note 9.02) 5,570,439,166 5,008,544,659
Total: 5,572,469,864 5,010,481,467
09.02 Cash at Banks:
Current Account (Revenue Collection) (Note 9.03) 3,654,253,713 2,924,848,642
Current Account (VAT) 341,388,359 218,985,523
STD Accounts 1,574,797,092 1,864,710,494
Total: 5,570,439,166 5,008,544,659
09.03 This represents collection for the last one months, by the different collecting banks, which has been
transferred to the Company's main account in the next month.

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ANNUAL REPORT 2020
Amount in Taka
Notes Particulars
June 30, 2020 June 30, 2019

10.00 Share Capital:

Authorized:
500,000,000 No. ordinary shares @ Tk. 10 each 5,000,000,000 5,000,000,000
Issued , subscribed and paid up:
Date No. of Shares Particulars
29.03.1998 500,000 Subscription 5,000,000 5,000,000
02.04.1998 7,000,000 Share Money Deposit 70,000,000 70,000,000
30.06.1999 119,619,400 Vendors agreement, Ordinary shares@
Tk.10 each for consideration against
Mirpur area assets taken over from DESA/BPDB 1,196,194,000 1,196,194,000
09.03.2009 6,355,970 Ordinary shares @ Tk.10 each issued as Bonus 63,559,700 63,559,700
15.02.2010 26,695,070 Ordinary shares @ Tk.10 each issued as Bonus 266,950,700 266,950,700
02.03.2011 48,051,130 Ordinary shares @ Tk.10 each issued as Bonus 480,511,300 480,511,300
06.02.2012 52,055,392 Ordinary shares @ Tk.10 each issued as Bonus 520,553,920 520,553,920
29.01.2013 39,041,545 Ordinary shares @ Tk.10 each issued as Bonus 390,415,450 390,415,450
12.02.2014 44,897,775 Ordinary shares @ Tk.10 each issued as Bonus 448,977,750 448,977,750
22.03.2015 34,421,627 Ordinary shares @ Tk.10 each issued as Bonus 344,216,270 344,216,270
18.02.2016 18,931,895 Ordinary shares @ Tk.10 each issued as Bonus 189,318,950 189,318,950
Total 397,569,804 share @ tk.10 each 3,975,698,040 3,975,698,040
10.01 Composition of shareholding:
The composition of Share holding position as of June 30, 2020 is as follows:

No. of share holders Number of share % of share

Sponsors (GOB) 2 268,866,788 67.63%
General Public 5,401 33,505,853 8.43%
Mutual Fund/Institute 274 94,434,297 23.75%
Foreign Company 41 762,866 0.19%
Total 5,718 397,569,804 100%
10.02 Distribution Schedule:
The distribution Schedule as at June 30, 2020 showing the number of shareholders and their shareholding
in percentages is disclosed below as a requirement of the "Listing Regulation" of Dhaka stock Exchange
(DSE) and Chittagong Stock Exchange (CSE).

Range of Holding No of share

% of shareholders Number of share % of share capital
in number of Shares holders
1 to 500 2,147 37.55% 373,588 0.09%
501 to 5,000 2,559 44.75% 4,799,081 1.21%
5,001 to 10,000 396 6.93% 2,920,779 0.73%
10,001 to 20,000 244 4.27% 3,575,281 0.90%
20,001 to 30,000 109 1.91% 2,685,034 0.68%
30,001 to 40,000 45 0.79% 1,585,530 0.40%
40,001 to 50,000 33 0.58% 1,519,759 0.38%
50,001 to 100,000 65 1.14% 4,987,436 1.25%
100,001 to 1,000,000 97 1.70% 30,879,043 7.77%
Over 1,000,000 Shares 23 0.40% 344,244,273 86.59%
5,718 100% 397,569,804 100%

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 ANNUAL REPORT 2020
Amount in Taka
Notes Particulars
June 30, 2020 June 30, 2019

11.00 GOB Equity

Opening Balance as at July 01, 2019 5,694,120,000 3,940,140,000
Addition during the period 232,800,000 1,753,980,000
Closing Balance as at June 30, 2020 5,926,920,000 5,694,120,000
This represents 60% of loan received from the Government from time to time under Annual Development
Program (ADP) as 60% is "Govt. Equity" and the balance 40% is soft loan. There is no directive from govt. to
issue share against such equity.
12.00 Retained Earnings
Opening Balance as at July 01, 2019 8,708,313,659 8,032,273,048
Adjustment of application of lease accounting (IFRS 16) (194,200) -
Prior year's adjustment ( Note-37) - (1,190,137)
Net Profit/(Loss) during the year 455,646,848 1,074,800,552
9,163,766,308 9,105,883,463
Cash dividend paid for the FY - 2018-2019 (477,083,765) (397,569,804)
Closing Balance as at June 30, 2020 8,686,682,543 8,708,313,659
13.00 Long Term Loans :
(A) Loan from ADB, AIIB, JAICA
ADB Loan no. 1505 (Note 13.01) 92,554,450 184,345,317
ADB Loan no. 2332 (Note 13.02) 3,650,504,628 4,063,146,150
ADB Loan no. 3087 (Note 13.03) 13,093,104,627 12,499,209,005
ADB Loan no. 3522 (Note 13.04) 131,012,671 102,110,602
AIIB Loan no. 003 (Note 13.05) 4,156,232,017 3,185,531,521
JICA Loan No - BD P97 (Note 13.06) 208,488,325 -
Sub-Total: 21,331,896,718 20,034,342,595

(B) Loan from Government of Bangladesh (GOB )

Loan no. 2332 (Note 13.07) 84,274,073 94,188,669
Loan no 3087 (Note 13.08) 2,179,200,000 2,052,000,000
Loan no LN 0003 (Note 13.09) 709,320,000 709,320,000
Loan no BD - P97 (Note 13.10) 28,000,000 -
Sub-Total: 3,000,794,073 2,855,508,669
Total 24,332,690,791 22,889,851,264
13.01 Loan from ADB ( No - 1505, 9th Power Project)
June 30, 2020 June 30, 2019
US $ Taka US $ Taka
Opening Balance as at July 01, 2019 2,181,601 184,345,317 3,272,402 273,900,043
Add: Drawn/Adjustment - - - -
2,181,601 184,345,317 3,272,402 273,900,043
Less: Transferred to current liability
(1,090,801) (92,718,048) (1,090,801) (92,172,647)
1,090,801 91,627,269 2,181,601 181,727,396
Add: Exchange Loss/(Loss) - 927,181 2,617,921
Closing Balance as at June 30, 2020 1,090,801 92,554,450 2,181,601 184,345,317

(i) This represents dollars amount drawn to date translated at exchange rate prevailing at balance sheet
date for import of materials/ equipment for 9th Power Project under the Subsidiary Loan Agreement
(SLA) entered into between the company and the Govt. of Bangladesh (GOB). The primary loan agreement
is between the ADB and the GOB.
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ANNUAL REPORT 2020
(ii) According to the terms of the agreement the Principal amount of the subsidiary loan repayable by
DESCO and the Government under this agreement shall be in local currency equivalent, determined at official
rate of exchange prevailing on the date of repayments. The principal amount of the subsidiary loan is
repayable in 25 years including a grace period of 5 (five) years in 40 ( forty) consecutive semi- annual
installments as per Amortization Schedule. The installment is payable on a semi-annual basis (i.e. June 15
and December 15 in each year). The foreign exchange risk on the outstanding amount of loan shall be borne
by DESCO.
(iii) The company shall pay to the Government in local currency interest at the rate of 4% per annum on
the local currency equivalent, determined at the official rate of exchange prevailing on the date of each
interest payment of the principal amount of the Loan relent to DESCO disbursed and outstanding from
time to time The interest is payable semi- annually on June 15 and December 15, each year).
(iv) The term of the project under which the loan was sanctioned expired on June 30, 2004.
13.02 Loan from ADB (No - 2332 BAN, Sustainable Power sector Development Project)

June 30, 2020 June 30, 2019

US $ Taka US $ Taka
Opening Balance as at July 01, 2019 48,084,570 4,063,146,150 53,146,104 4,448,328,866
Add: Drawn/Adjustment - - - -
48,084,570 4,063,146,150 53,146,104 4,448,328,866
Less: Transfer to current liability (5,061,534) (430,230,366) (5,061,534) (427,699,599)
43,023,036 3,632,915,784 48,084,570 4,020,629,267
Exchange (Gain)/ loss - 17,588,844 - 42,516,883
Closing Balance as at June 30, 2020 43,023,036 3,650,504,628 48,084,570 4,063,146,150

(i) This represents dollars amount drawn to date translated at exchange rate prevailing at balance sheet
date for import of materials/ equipment for Sustainable Power Sector Development Project under the
Subsidiary Loan Agreement (SLA) entered into between the Company and the Govt. of Bangladesh (GOB),
the primary loan agreement being between the ADB and the GOB.
(ii) As per the terms of the Agreement the principal amount of the subsidiary Loan repayable by DESCO to
the Government shall be in local currency equivalent, determined at official rate of exchange rate
prevailing on the date of repayment . The principal amount of the subsidiary loan is repayable in 20 years
including a grace period of 5 years in 30 consecutive semi- annual installments (i.e. May 1 and November 1
in each year). The foreign exchange and interest rate risks are to be borne by DESCO during the repayment
period of 20 years.
(iii) DESCO shall pay interest to the Government in local currency at the rate of 4% per annum. Such
interest shall be calculated on the total principal amount outstanding of the subsidiary loan. The interest is
payable on semi-annual basis, (i.e. May 1 and November 1, in each year).
(iv) The term of the project under which the loan was sanctioned expired on June 30, 2013.

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13.03 Loan from ADB (No - 3087) Power System Expansion and Efficiency Improvement Investment Program

June 30, 2020 June 30, 2019

US $ Taka US $ Taka
Opening Balance as at July 01, 2019 147,919,633 12,499,209,005 115,671,586 9,689,244,744
Add: Drawn/Adjustment 6,389,202 542,226,466 32,248,047 2,712,941,079
154,308,835 13,041,435,471 147,919,633 12,402,185,823
Less Transfer to current Liability - - - -
154,308,835 13,041,435,471 147,919,633 12,402,185,823
Exchange (Gain)/ loss - 51,669,156 - 97,023,182
Closing Balance as at June 30, 2020 154,308,835 13,093,104,627 147,919,633 12,499,209,005

(i) This represents dollars amount drawn to date translated at exchange rate prevailing at balance sheet
date for import of materials/ equipment for Power System Expansion and Efficiency Improvement
Investment Program (tranche-2) project under Subsidiary Loan Agreement(SLA) entered into between the
Company and the Govt. of Bangladesh (GOB), the primary loan agreement being between the ADB and the
GOB.
(ii) As per the terms of the Agreement the principal amount of the subsidiary Loan repayable by DESCO to
the Government shall be in local currency equivalent, determined at official rate of exchange rate
prevailing on the date of repayment . The principal amount of the subsidiary loan is repayable in 20 years
including a grace period of 5 years in 30 consecutive semi- annual installments (i.e. May 15 and November
15 in each year). The foreign exchange and interest rate risks are to be borne by DESCO during the
repayment period of 20 years.
(iii) DESCO shall pay interest to the Government in local currency at the rate of 4% per annum. Such
interest shall be calculated on the total principal amount outstanding of the subsidiary loan. The interest is
payable on semi-annual basis, (i.e. May 15 and November 15, in each year).
(iv) The term of the project under which the loan was sanctioned will expire on June 30, 2021.
13.04 Loan from ADB (No - 3522)
June 30, 2020 June 30, 2019
US $ Taka US $ Taka
Opening Balance as at July 01, 2019 1,208,409 102,110,602 387,946 32,471,115
Add: Drawn/Adjustment 335,641 28,278,448 820,463 69,363,670
1,544,050 130,389,050 1,208,409 101,834,785
Less Transfer to current Liability - - - -
1,544,050 130,389,050 1,208,409 101,834,785
Exchange (Gain)/ loss - 623,621 - 275,817
Closing Balance as at June 30, 2020 1,544,050 131,012,671 1,208,409 102,110,602

(i) This represents dollars amount drawn to date translated at exchange rate prevailing at balance
sheet date for import of materials/equipment for Bangladesh Power System Enhancement & Efficiency
Improvement project under Subsidiary Loan Agreement(SLA) entered into between the Company and
the Govt. of Bangladesh (GOB), the primary loan agreement being between the ADB and the GOB.
(ii) As per the terms of the Agreement the principal amount of the subsidiary Loan repayable by DESCO
to the Government shall be in local currency equivalent, determined at official rate of exchange rate

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prevailing on the date of repayment . The principal amount of the subsidiary loan is repayable in 20
years including a grace period of 5 years in 30 consecutive semi- annual installments (i.e. January 15
and July 15 in each year). The foreign exchange and interest rate risks are to be borne by DESCO
during the repayment period of 20 years.
(iii) DESCO shall pay interest to the Government in local currency at the rate of 4% per annum. Such
interest shall be calculated on the total principal amount outstanding of the subsidiary loan. The
interest is payable on semi-annual basis, (i.e. January 15 and July 15 in each year).
(iv) The term of the project under which the loan was sanctioned will expire on December 31, 2020.
13.05 Loan from AIIB (No - LN0003)
June 30, 2020 June 30, 2019
US $ Taka US $ Taka
Opening Balance as at July 01, 2019 37,698,598 3,185,531,521 4,801,442 401,880,657
Add: Drawn 11,284,690 953,238,940 32,897,156 2,771,710,948
48,983,288 4,138,770,461 37,698,598 3,173,591,605
Less Transfer to current Liability - - - -
48,983,288 4,138,770,461 37,698,598 3,173,591,605
Exchange (Gain)/ loss - 17,461,556 - 11,939,916
Closing Balance as at June 30, 2020 48,983,288 4,156,232,017 37,698,598 3,185,531,521

(i) This represents dollars amount drawn to date translated at exchange rate prevailing at balance
sheet date for import of materials/equipment for Distribution System Upgrade & Expansion project
under Subsidiary Loan Agreement(SLA) entered into between the Company and the Govt. of
Bangladesh (GOB), the primary loan agreement being between the AIIB and the GOB.
(ii) As per the terms of the Agreement the principal amount of the subsidiary Loan repayable by
DESCO to the Government shall be in local currency equivalent, determined at official rate of
exchange rate prevailing on the date of repayment . The principal amount of the subsidiary loan is
repayable in 20 years including a grace period of 5 years in 30 consecutive semi- annual installments
(i.e. January 20 and July 20 in each year). The foreign exchange and interest rate risks are to be
borne by DESCO during the repayment period of 20 years.
(iii) DESCO shall pay interest to the Government in local currency at the rate of 4% per annum. Such
interest shall be calculated on the total principal amount outstanding of the subsidiary loan. The
interest is payable on semi-annual basis, (i.e. January 20 and July 20 in each year).
(iv) The term of the project under which the loan was sanctioned will expire on December 31, 2020.
13.06 Loan from JICA (No - BD P97)
June 30, 2020 June 30, 2019
JPY Taka JPY Taka
Opening Balance as at July 01, 2019 - - - -
Add: Drawn 264,277,253 207,709,106 - -
264,277,253 207,709,106 - -
Less Transfer to current Liability - - - -
264,277,253 207,709,106 - -
Exchange (Gain)/ loss - 779,219 - -
Closing Balance as at June 30, 2020 264,277,253 208,488,325 - -

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(i) This represents JPY amount drawn to date translated at exchange rate prevailing at balance
sheet date for Dhaka Underground Substation Construction project in Gulshan under Subsidiary Loan
Agreement(SLA) entered into between the Company and the Govt. of Bangladesh (GOB), the primary
loan agreement being between the AIIB and the GOB.
(ii) As per the terms of the Agreement the principal amount of the subsidiary Loan repayable by
DESCO to the Government shall be in local currency equivalent, determined at official rate of
exchange rate prevailing on the date of repayment . The principal amount of the subsidiary loan is
repayable in 20 years including a grace period of 5 years in 30 consecutive semi- annual installments
(i.e. January 20 and July 20 in each year). The foreign exchange and interest rate risks are to be
borne by DESCO during the repayment period of 20 years.
(iii) DESCO shall pay interest to the Government in local currency at the rate of 4% per annum. Such
interest shall be calculated on the total principal amount outstanding of the subsidiary loan. The
interest is payable on semi-annual basis, (i.e. January 20 and July 20 in each year).
(iv) The term of the project under which the loan was sanctioned will expire on December 31, 2023.
Amount in Taka
13.07 Loan from GOB (loan No 2332) 2019-2020 2018-2019
Opening Balance as at July 01, 2019 94,188,669 104,103,265
Add: Drawn/Adjustment - -
94,188,669 104,103,265
Less: Transfer to current liability (9,914,596) (9,914,596)
Closing Balance as at June 30, 2020 84,274,073 94,188,669
(i) This represents 40% of the amount released to the Company by the Government under Annual
Development Program (ADP) to enable the Company to pay the customs duty & VAT on material/
equipment imported by the company under the ADB Loan, as well as to meet other project related
expenses . The balance 60% is accounted for under " GOB Equity". The loan is repayable in 30
installments starting from 2013 after a grace period of 5 years.
(ii) The loan carries interest at 3% p.a, and is repayable as per Debt Service Liability (DSL) schedule
provided by the Government.
Amount in Taka
13.08 Loan from GOB (loan No 3087) 2019-2020 2018-2019
Opening Balance as at July 01, 2019 2,052,000,000 1,592,000,000
Add: Withdrawn 127,200,000 460,000,000
2,179,200,000 2,052,000,000
Less: Transfer to current liability - -
Less: Refund - -
Closing Balance as at June 30, 2020 2,179,200,000 2,052,000,000

(i) This represents 40% of the amount released to the Company by the Government under Annual
Development Program (ADP) to enable the Company to pay the customs duty & VAT on material/
equipment imported by the company under the ADB Loan, as well as to meet other project related
expenses . The balance 60% is accounted for under " GOB Equity". The loan is repayable in 30
installments starting from 2020 after a grace period of 5 years.
(ii) The loan carries interest at 3% p.a, and is repayable as per Debt Service Liability (DSL) schedule
provided by the Government.

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Amount in Taka
Notes Particulars
June 30, 2020 June 30, 2019
13.09 Loan from GOB (LN 0003)
Opening Balance as at July 01, 2019 709,320,000 -
Add: Withdrawn - 709,320,000
709,320,000 709,320,000
Less: Transfer to current liability - -
Less: Refund - -
Closing Balance as at June 30, 2020 709,320,000 709,320,000
(i) This represents 40% of the amount released to the Company by the Government under Annual
Development Program (ADP) to enable the Company to pay the customs duty & VAT on material/
equipment imported by the company under the AIIB Loan, as well as to meet other project related
expenses . The balance 60% is accounted for under " GOB Equity". The loan is repayable in 30
installments starting from 2020 after a grace period of 5 years.
(ii) The loan carries interest at 3% p.a, and is repayable as per Debt Service Liability (DSL) schedule
provided by the Government.
13.10 Loan from GOB (No - BD P97)
Opening Balance as at July 01, 2019 - -
Add: Withdrawn 28,000,000 -
28,000,000 -
Less: Transfer to current liability - -
Less: Refund - -
Closing Balance as at June 30, 2020 28,000,000 -
(i) This represents 40% of the amount released to the Company by the Government under Annual
Development Program (ADP) to pay VAT and AIT on Consultancy, Engineering Service and construction
works of UGSS Project under the JICA Loan, as well as to meet other project related expenses . The
balance 60% is accounted for under " GOB Equity". The Payment Schedule will be fixed after SLA
agreement with GOB.
(ii) The loan carries interest at 3% p.a, and is repayable as per Debt Service Liability (DSL) schedule
provided by the Government.
14.00 Deferred Tax liability: *Restated
Opening Balance as at July 01, 2019 2,356,998,912 2,657,295,469
Less: Prior year adjustment for unabsorbed depreciation (551,893,085)
Restated balanse as at July 01, 2019 2,356,998,912 2,105,402,385
Deferred tax expnses during the year 230,028,760 251,596,527
Closing Balance as at June 30, 2020 2,587,027,672 2,356,998,912
Deferred tax provision has been arrived at as under:
i. Deferred tax on PPE
WDV of Accounting base 22,243,935,429 21,025,080,660
WDV of Tax base 11,775,165,077 11,480,706,178
Temporary Difference 10,468,770,352 9,544,374,482
Less: Permanent difference of vehicle 13,716,000 13,716,000
10,455,054,352 9,530,658,482
Effective Tax Rate 25% 25%
Deferred tax liability/(assets) 2,613,763,588 2,382,664,621
ii. Deferred tax on Bad debt
Provision for Bad debt (106,943,662) (102,662,834)
Deferred tax liability/(asset) @ 25% (26,735,916) (25,665,709)

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Amount in Taka
Notes Particulars
June 30, 2020 June 30, 2019
Total Deferred tax Provision required 2,587,027,672 2,356,998,912
Already provided up to last year 2,356,998,912 2,105,402,385
Deferred tax Provision during the year 230,028,760 251,596,527
15.00 Due to DPDC for assets taken over: 3,840,410,313 3,840,410,313
15.01 Area wise break-up is as under:
Gulshan Area (comprising Gulshan,
Baridhara, Uttara, Dakshinkhan) 2,029,801,244 2,029,801,244
Tongi Area (comprising Tongi East and Tongi West) 565,653,114 565,653,114
Uttara & Bashundhara Grid Substation 1,244,955,955 1,244,955,955
Total 3,840,410,313 3,840,410,313
15.02 An independent values were appointed to physically verify and value the assets taken over by the
company from DESA in the year 2003. The values submitted its report on September 2010.The board
finalized the value in its meeting held on May 05, 2019. Based on the finalized valuation report, value
of Land decreased by Tk. 105,378,060, Building increased by Tk. 72,110,175, Distribution Equipment
decreased by Tk. 425,364,528 and Distribution Line increased by Tk. 259,371,187 which has been
adjusted during the year.
15.03 The terms and conditions of repayment to DESA / DPDC against the assets taken over have not yet
been determined.
16.00 Consumer Security Deposits:
Opening Balance as at July 01, 2019 2,951,441,875 2,743,661,381
Received during the year 198,265,276 245,961,156
3,149,707,151 2,989,622,537
Refunded during the year (24,627,058) (38,180,662)
Closing Balance as at June 30, 2020 3,125,080,093 2,951,441,875
17.00 Lease Liability (operating lease)
Opening Balance as at July 01, 2019 - -
Addition during the year 33,480,312 -
Finance Cost during the year 2,025,590 -
Payment during the year (7,181,973) -
Closing Balance as at June 30, 2020 28,323,929 -
18.00 Accounts Payable
Bangladesh Power Development Board (BPDB)- (Note 18.01) 5,981,641,914 6,889,161,414
Power Grid Company of Bangladesh (PGCB)- (Note 18.02) 273,217,884 317,293,264
Dhaka Electric Supply Authority (DESA/DPDC) - (Note 18.03) 127,795,644 94,526,846
Rural Electrification Board (REB) - (Note 18.04) 379,157 379,157
Power Grid Company of Bangladesh PGCB - ( Note 18.05) 612,000 612,000
6,383,646,601 7,301,972,681
18.01 Accounts Payable - BPDB
Opening Balance as at July 01, 2019 6,889,161,414 5,934,480,510
Energy purchased during the year 33,560,533,276 33,996,576,302
40,449,694,690 39,931,056,812
Payment made during the year (34,468,052,776) (33,041,895,398)
Closing Balance as at June 30, 2020 5,981,641,914 6,889,161,414

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Amount in Taka
Notes Particulars
June 30, 2020 June 30, 2019

18.02 Accounts Payable - PGCB

Opening Balance as at July 01, 2019 317,293,264 273,367,870

Wheeling charge during the year 1,539,828,307 1,564,201,193
1,857,121,571 1,837,569,063
Payment made during the year (1,583,903,687) (1,520,275,799)
Closing Balance as at June 30, 2020 273,217,884 317,293,264
18.03 Accounts Payable - DESA/ DPDC
Opening Balance as at July 01, 2019 94,526,846 181,607,217
Material Supply (33,784,600) -
Consumer bill collection (1,384,199) (89,097,566)
129,695,645 92,509,651
Paid during this year 1,900,000 2,017,195
Closing Balance as at June 30, 2020 127,795,645 94,526,846
18.04 Accounts Payable - REB (Material)
Opening Balance as at July 01, 2019 379,157 379,157
Addition during this year - -
Closing Balance as at June 30, 2020 379,157 379,157
18.05 Accounts Payable - PGCB (Material)
Opening Balance as at July 01, 2019 612,000 612,000
Addition during this year - -
Closing Balance as at June 30, 2020 612,000 612,000
19.00 Creditors for Goods/ Works :
Equipment & materials (Note 19.01) 38,417,845 3,091,056
Imported Material through ADB Loan (Note 19.02) 293,853,209 80,133,059
Bangladesh Telephone shilpa Sangstha 530,291,433 91,402,870
Construction of KPE & DEDA 3,288,220 3,288,220
Engineering Services ltd. 3,768,800 3,768,800
Ideal Enterprise 2,594,822 2,594,822
Master Simex Paper ltd. 120,100 3,004,860
Microtech 25,215,001 25,215,001
Tara Taraders - 3,693,500
Control Ware power & AutoEng. 17,091,310 -
KEI Ind (DESCO Fund) 9,492,210 -
Sun Rise Enterprise 13,485,756 -
Total 937,618,707 216,192,188
19.01 Includes In this figure as payable to S Q Wire & Cable Co. ltd. JV Bengal Co. ltd. Tk. 0.67 million, Rangs
Electronicsltd ltd.. Tk.0.96 million, Invent Technologist. Tk. 0.78 million, Advance Chemical Industries ltd.
5.78 million, HT Power Engineering Tk.3.33 million, Milky Way Shipping lines pvt. ltd. Tk. 2.94 million,
Progati Industries ltd. Tk. 4.85 million, Rainbow Corporation Tk.2.26 million SME Engineering ltd. Tk.
8.49 million.
19.02 This includes as payable Tk 1181.06 million to M/S Hexing Electrical Co. ltd. against supply of Single
phase & Three Phase Prepaid meter.

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 ANNUAL REPORT 2020
Amount in Taka
Notes Particulars
June 30, 2020 June 30, 2019

20.00 Others liabilities *Restated

VAT collected against Electricity Bills(Note 20.01) 433,664,718 228,956,372

Tax deducted from Contractors, Suppliers & Others 13,617,432 4,808,521
VAT deducted from Contractors, Suppliers & Others 11,872,610 -
Retention money ( Contractors & Suppliers) 250,285,625 135,007,452
Receipts against Deposit Works 2,577,756,222 2,577,756,222
Unpaid dividend (Note 20.02) 525,756,884 598,904,821
Others 24,334,936 47,987,691
Total 3,837,288,426 3,593,421,078
20.01 VAT collected against electricity bill has paid subsequently is on 05/07/2020 Tk. 90,692,842.33, on
10/08/2020 Tk 238054964.25, On 07/09/2020 Tk 210,660,406.91.
20.02 This includes Tk.320 million as arrear dividend to BPDB. Others dividend are Tk. 0.75 million for FY (2005
- 06), Tk. 1.377 million in (2006 - 07) Tk. 1.38 million in (2007-08), Tk. 1.33 million in (2008 - 09) Tk. 1.42
million in (2009 - 10), Tk. 1.48 in (2010- 11) Tk. 3.88 In (2011-12) Tk.32.26 million(2012-13) Tk. 2.66 million In
( 2013 -14) Tk.5.57 in (2014-15) Tk.5.91 million (2015-16) TK. 59.34 million in (2016-17) Tk.59.43 million in
(2017-18) Tk. 28.94 million in (2018-19) owner are different share holders respectively.
21.00 Liabilities for Expenses
Audit Fees 414,776 307,276
Payable for Contributory Provident Fund & GPF 17,219,285 14,368,957
Payable for COSS, LEM, MSS , Civil Cons. & Others (Note 21.01) 166,404,017 132,984,688
BERC Sales Charge (Note -21.02) 78,703,207 68,847,222
Employees Welfare Fund 800 346,825
Guard Force Services & Human Resources 1,389,877 6,238,080
JV of DEDA & SSL 20,526,333 36,177,663
The East way Electric Co. & Associates 2,643,789 30,241,560
Requirement Expenses - 25,084,050
Liability to REB for Tongi Grid Substation Up gradation Project 152,471,105 152,471,105
Chairman - KDA 16,294,223 -
Chairman - RDA 9,232,465 -
Creditors to others (Note - 21.03) 438,203,724 43,532,635
Total 903,503,600 510,600,061
21.01 This includes Commercial Operation Support Service (COSS) Tk. 40.08 million, Line & equipment
maintenance (LEM) Tk. 19.91 million, Maintenance of Substation (MSS) Tk. 7.33 million, Engineering
Services Ltd.Tk. 37.64 million, HH Traders Tk 1.29 million, MAQ Faragi JV CA Tk.2.40 million, Munshi
Engineers. Tk. 1.4 million, Reliable rent-A-Car Tk.1.5 million, Reliance Enterprise Tk.1.9 million, Saju
Enterprise Tk.7.53 million, East Way Electric Co. Tk. 2.22 million, Wahid Traders Tk. 2.64 million, HT
Power & Saju Enterprise Tk.25.95 million, Sepanta Consultants & Builders Tk. 1.3 million, JV of DEDA &
Khan Tk. 2.02 million,and so on.
21.02 This includes Tk.98,55,985 on .025% of Net Sales Tk. 3942,39,39,203.00 as provision aganist "Annual
system operating fees" payable to Bangladesh Energy Regulatory Commission (BERC) as per BERC
rules.
21.03 This includes as creditors as different parties whose are Al Arafat Service Pvt. ltd. Tk.1.67 million,
Ananda Rent - A - CarofTk.0.32 million, Elite Security Service Tk. 1.61 million, Guard Force Services &
Human Res. Tk. 1.39 million, CONVOY Service Tk. 2.86 million, Rojony Gondha Enterprise Tk. 2.83 million,
liabilites for exp.422.77 million, Advance received for GPBD Project from REB Tk. 152.47 million, and so
on.
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ANNUAL REPORT 2020
Amount in Taka
Notes Particulars
June 30, 2020 June 30, 2019
22.00 Current Maturity of Long Term Loans:
ADB Loan No-1505 (Note-22.01) 92,554,428 92,172,647
ADB Loan No-1731 (Note-22.02) - 98,179,028
ADB Loan No-2332 (Note-22.03) 429,471,160 427,699,599
GOB Loan No 1505 & 1731 (Note-22.04) - 16,086,642
GOB Loan No 2332 (Note-22.05) 9,914,596 9,914,596
Total 531,940,185 644,052,512
22.01 ADB (Loan No. 1505)
June 30, 2020 June 30, 2019
US $ Taka US $ Taka
Opening Balance as at July 01, 2019 1,090,801 92,172,647 1,090,801 91,300,007
"Transferred from longterm loan" 1,090,801 92,718,048 1,090,801 92,172,647
2,181,601 184,890,695 2,181,602 183,472,654
Paid during the year - (92,636,238) (1,090,801) (91,845,407)
2,181,601 92,254,457 1,090,801 91,627,247
Exchange loss/(gain) - 299,971 - 545,400
Closing Balance as at June 30, 2020 1,090,801 92,554,428 1,090,801 92,172,647

22.02 ADB (Loan No. 1731)

June 30, 2020 June 30, 2019

US $ Taka US $ Taka
Opening Balance as at July 01, 2019 1,161,882 98,179,028 2,348,161 196,541,113
"Transferred from longterm loan" - - 1,161,882 98,179,023
1,161,882 98,179,028 3,510,043 294,720,136
Paid during the year (1,161,882) (98,643,783) (2,348,161) (197,715,188)
- (464,755) 1,161,882 97,004,948
Exchange loss/(gain) - 464,755 - 1,174,080
Closing Balance as at June 30, 2020 - - 1,161,882 98,179,028

22.03 ADB (Loan No. 2332)

June 30, 2020 June 30, 2019
US $ Taka US $ Taka
Opening Balance as at July 01, 2019 5,061,534 427,699,599 5,061,534 423,650,372
"Transferred from longterm loan" 5,061,534 430,230,366 5,061,534 427,699,599
10,123,068 857,929,965 10,123,067 851,349,971
Paid during the year (5,061,534) (429,850,751) (5,061,534) (426,181,140)
5,061,534 428,079,214 5,061,534 425,168,831
Exchange loss/(gain) - 1,391,946 - 2,530,768
Closing Balance as at June 30, 2020 5,061,534 429,471,160 5,061,534 427,699,599

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Amount in Taka
Notes Particulars
June 30, 2020 June 30, 2019
22.04 GOB Loan ( No: 1505 & 1731)
Opening Balance as at July 01, 2019 16,086,642 32,173,286
Transferred from long term loan - 16,086,642
16,086,642 48,259,928
Paid during the year (16,086,642) (32,173,286)
Closing Balance as at June 30, 2020 - 16,086,642
22.05 GOB Loan (No: 2332)
Opening Balance as at July 01, 2019 9,914,596 9,914,596
Transferred from long term loan 9,914,596 9,914,596
19,829,192 19,829,192
Paid during the year (9,914,596) (9,914,596)
Closing Balance as at June 30, 2020 9,914,596 9,914,596
23.00 Accrued Interest on Loans
Interest payable on ADB Loan (23.01) 2,944,416,381 2,429,585,699
Interest payable on 40% (Debt Portion) of GOB Loan(23.02) 233,865,253 150,818,391
Interest payable on AIIB - LN003 (23.03) 202,551,927 51,167,696
Interest payable on JICA Loan BD-P97 (23.04) 2,099,041 -
Total 3,382,932,601 2,631,571,786
23.01 Interest on ADB loan
Opening Balance as at July 01, 2019 2,429,585,699 1,997,569,187
Interest accrued during the year 706,390,102 647,446,163
3,135,975,801 2,645,015,350
Paid during the year (191,559,420) (215,429,651)
Closing Balance as at June 30, 2020 2,944,416,381 2,429,585,699
23.02 Interest on GOB Loan
Opening Balance as at July 01, 2019 150,818,391 86,915,810
Interest accrued during the year 86,350,094 68,453,884
237,168,486 155,369,694
Paid/ adjustment during the year (3,303,233) (4,551,303)
Closing Balance as at June 30, 2020 233,865,253 150,818,391
23.03 Interest on AIIB LN - 003
Opening Balance as at July 01, 2019 51,167,696 6,386,049
Interest accrued during the year 151,384,231 44,781,647
202,551,927 51,167,696
Paid/ adjustment during the year - -
Closing Balance as at June 30, 2020 202,551,927 51,167,696
23.04 Interest on JICA Loan - BD-P97
Opening Balance as at July 01, 2019 - -
Interest accrued during the year 2,099,041 -
2,099,041 -
Paid/ adjustment during the year - -
Closing Balance as at June 30, 2020 2,099,041 -

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Amount in Taka
Notes Particulars
June 30, 2020 June 30, 2019
24.00 Workers Profit Participation Fund (WPPF)
Opening Balance as at July 01, 2019 99,493,608 32,314,432
Addition during the year 42,812,987 67,179,176
142,306,595 99,493,608
Paid/ adjustment during the year - -
Closing Balance as at June 30, 2020 142,306,595 99,493,608
25.00 Provision for Income Tax: *Restated
Opening Balance as at July 01, 2019 89,526,464 -
Add: Provided during the year (Note-39.01) 170,584,141 89,526,464
Less Provision adjust with advance income tax - -
260,110,605 89,526,464
Add: Prior year adjustment as per settlement of Appellate - -
Closing Balance as at June 30, 2020 260,110,605 89,526,464
25.01 Details of Provision for Income Tax :
For FY 2015-16 - -
For FY 2016-17 - -
For FY 2017-18 - -
For FY 2018-19 89,526,464 89,526,464
For FY 2019-20 170,584,141 -
260,110,605 89,526,464
26.00 Loan under Secured Overdraft
Opening Balance as at July 01, 2019 - -
Add: Received during this year 4,823,133,791 -
4,823,133,791 -
Less Paid during this year (3,002,138,778) -
Closing Balance as at June 30, 2020 1,820,995,013 -

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Amount in Taka
Notes Particulars July 01, 2019 to July 01, 2018 to
June 30, 2020 June 30, 2019
27.00 Energy Sales: Taka Tarif % 2019-20 2018-19
Domestic A 43% 16,847,850,712 16,355,073,773
Agricultural Pump B 0% 269,013 340,495
Small Industries C1 2% 743,458,998 875,415,761
Construction C2 2% 698,962,592 704,490,669
Charitable Institutions D1 1% 419,245,095 431,155,545
Street Light, Pump etc. D2 0% 168,148,500 114,862,228
Battery Charcing Station D3 0% 2,389,431 -
Commercial & Office E 12% 4,914,448,460 5,369,421,017
Temporary LT-T 0% 10,474,411 3,763,377
Domestic MT1 4% 1,481,953,018 1,390,632,185
Commercial & Office MT2 17% 6,745,075,804 7,187,998,301
Industry MT3 12% 4,621,543,127 4,836,873,495
Construction MT4 0% 116,710,399 74,747,229
General MT5 6% 2,403,752,249 2,291,764,108
General MT6 0% 6,835,494 -
Temporary HT1 0% 19,496,565 3,092,397
Commercial & Office HT2 1% 223,325,332 13,000,313
Industry HT3 0% - 208,223,408

Total 100% 39,423,939,203 39,860,854,298

27.01 Energy Sales -Unit Tariff % Unit (Mkwh) Unit (Mkwh)

Domestic A 52% 2,663.13 2,578.19

Agricultural Pump B 0% 0.06 0.08
Small Industries C1 2% 87.18 103.95
Construction C2 1% 53.95 55.31
Charitable Institutions D1 1% 69.49 74.29
Street Light, Pump etc. D2 2% 76.86 13.89
Battery Charcing Station D3 7% 343.20 -
Commercial & Office E 2% 118.74 511.21
Temporary LT-T 0% 0.28 0.22
Domestic (Medium Tention -1 ) MT1 12% 606.34 158.00
Commercial & Office MT2 12% 594.48 817.97
Industry MT3 3% 148.59 581.99
Construction MT4 4% 200.38 5.96
General MT5 2% 89.85 279.24
Temporary MT6 0% 0.40 -
Battery Charcing Station MT7 0% 0.03 -
Agricultural Pump MT8 0% - -
Temporary HT1 0% 24.48 0.17
Commercial & Office HT2 0% 2.86 1.45
Industry HT3 0% - 23.77
Total 100% 5,080.29 5,205.71

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28.00 Energy Purchase:
2019-20 2018-19
Unit (Mkwh) Taka Unit (Mkwh) Taka
Total 5,423.31 35,100,361,583 5,604.45 35,560,777,495

28.01 Electricity is purchased solely from Bangladesh Power Development Board (BPDB) at the rate of Tk 6.4523
at 33 KV & 6.3874 at 132 KV/ kwh. The company also pays wheeling charge to Power Grid Co. Ltd (PGCB)
at Tk 0.2944 at 33 KV & 0.2886 at 132 per Kwh KV. These traiff rate effective from 1st March -2020

29.00 Other Operating Revenue:

Received from Consumer 347,124,656 577,690,631
Late payment charge 287,114,418 314,823,507
Total 634,239,074 892,514,138

29.01 This represents application fee, disconnection / reconnection fees, cost of materials realized, meter
testing fees, meter rent etc.
30.00 Direct Operating Expenses
Commercial operation support services 165,006,866 171,914,216
Schedule & preventive maintenance (Less Rent of Walkie Talkie) 288,338,790 283,058,502
Special action team & collection drive 1,164,833 276,756
Consultancy fees for staking sheet 2,741,334 17,815,276
Maintenance of distribution of line & equipment 69,970,203 123,840,058
R&M of Grid Sub-Station/Switching-Station 33,574,748 75,582,430
Repair & maintenance of transformer 26,078,613 10,627,340
Meter & service cable issue 10,798,459 11,816,145
Revenue stamp charge against consumer bill 53,434,922 60,845,450
System operating fee BERC ( Note 30.01) 9,955,985 9,965,214
Communication Expenses - Prepaid Meter 5,326,604 -
666,391,356 765,741,387
Less: Receipt against deposit work 418,153,239 467,236,970
Total 248,238,117 298,504,417
30.01 This represents provision at 0.025% of net sales value as "annual system operating fees" payable to
Bangladesh Energy Regulatory Commission (BERC) as per BERC rules. These amount include Tk.1,00,000.00
One Lac for retail tarrif proposal fee regarding changes of electricity bill.
31.00 Depreciation:
Depreciation (Direct) 1,198,984,771 1,237,144,127
Depreciation (Indirect) 92,486,093 71,040,963
Total 1,291,470,864 1,308,185,090
32.00 Administrative Expenses:
*Restated
Director's Fees 3,058,667 2,799,950
Audit fees 512,000 374,500
Annual Picnic - 3,759,413
Advertisement & Notices 6,834,385 7,869,921
Annual General Meeting (AGM) 653,178 1,303,903

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Amount in Taka
Notes Particulars July 01, 2019 to July 01, 2018 to
June 30, 2020 June 30, 2019
Bank charges 7,555,916 6,225,948
Conveyance 1,761,222 2,204,271
Cleaning expenses 10,955,155 11,825,119
Electricity, gas & water 44,428,576 37,771,079
Entertainment 6,198,432 6,060,053
Fuel for vehicles 20,085,942 22,679,790
Honorarium to various committee members 5,337,494 1,834,838
Insurance of vehicles 2,706,855 3,731,474
Legal & Professional fees 3,398,201 2,259,419
Newspaper & Periodicals 3,764,897 512,993
Office maintenance 6,827,200 3,302,921
Office rent 56,678,507 57,655,741
Office security 62,479,730 51,984,631
Postage, telephone & internet 18,945,439 13,589,320
Printing & Stationery 17,422,952 19,787,775
Rates & Taxes 13,584,371 1,990,917
Repair & Maintenance of non operating assets 9,721,457 9,201,883
Repair & Maintenance of head office building 13,454,453 9,791,040
Repair & Servicing of vehicle 8,198,427 7,552,583
Recruitment expenses 4,781,772 515,738
Inspection survey & consultancy fees 5,308,269 2,963,569
Staff training 24,802,305 24,841,337
Listing fee & annual charges 9,806,087 1,423,758
Transport (hired) 28,243,013 22,265,669
Corporate Social Expenses 26,063,223 20,908,444
BERC license fee 2,300,000 -
Innovation Expenses 181,115 23,351
Office Shifting 11,645 42,050
Different day celebration & activities 5,743,587
Total Administrative Expenses: 431,804,471 359,053,398
32.01 Directors are entitled to a remuneration Tk. 12,000/- from 01.03.2020 for attending each Board meeting.
33.00 Employee Expenses:
Salary & Allowances 1,431,418,278 1,273,034,182
Festival bonus 139,171,726 122,660,537
Incentive bonus 118,587,537 96,925,860
Company's contribution to providend fund 80,029,031 71,740,222
Company's contribution to gratuity fund 72,691,357 99,360,490
Group insurance premium 10,649,163 20,022,457
Electricity / telephone expense reimbursed (Note - 32.02) 24,128,960 21,336,079
Medical Expense Reimbursed ( Note - 32.02) 76,703,933 75,680,934
Encashment of Earned leave 61,773,209 59,274,891
Uniform 1,105,801 1,055,731
Total 2,016,465,545 1,841,091,383

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33.01 Remuneration of Directors and Executives:
Amount in Taka Amount in Taka
2019-20 2018-19
Directors Executives Directors Executives
Salary and bonus 10,598,800 508,791,280 10,344,639 430,473,840
House rent 4,593,859 255,707,604 4,434,676 219,402,941
Provident fund 910,695 43,015,696 886,946 36,937,076
Total 16,103,354 807,514,580 15,666,261 686,813,857

33.02 Employee Telephone bills and Medical expense are reimbursed on actual basis to employees, subject to
ceiling.
Amount in Taka
July 01, 2019 to July 01, 2018 to
34.00 Interest Income: June 30, 2020 June 30, 2019
Interest earned on FDR 842,024,505 806,761,523
Interest earned on STD 98,736,510 94,556,058
Total 940,761,015 901,317,581
35.00 Miscellaneous Income:
Sale of tender documents 686,000 103,528
Sale of obsolete store materials and Others received 61,409,417 22,530,878
Recovery received against land 3,850,267 15,401,068
Total 65,945,684 38,035,474
36.00 Finance Cost:
Interest expense against ADB loan 703,516,369 647,446,164
Interest expense against GOB loan 86,343,676 68,453,883
Interest expense against AIIB 151,384,231 44,781,647
Interest expense against - JICA Laon Nos - BD - P97 2,099,041 -
Interest expense against - SOD - Rupali Bank 36,615,673 -
Finance Cost of Lease 2,025,590
Total (981,984,580) (760,681,694)
37.00 Exchange Fluctuation Gain / (Loss): (91,206,250) (159,553,472)
Exchange fluctuation loss of Tk.9,12,06,250/- has arisen out of translation of foreign currency loan (in dollar)
into taka at Financial Position date at the rate of Tk.84.85/$1 (2018-19: at Tk.84.50/$1).
38.00 Calculation of Workers profit participation fund (WPPF)
Net profit before tax & WPPF 899,072,737 1,410,762,696
Transferred to Workers profit participation fund (WPPF) 42,812,987 67,179,176
(899,072,737 X 5) /105
39.00 Income Tax :
Current tax provision (39.01) 170,584,141 89,526,464
Deferred tax provision (14.00) 230,028,760 251,596,527
Tax Expenses 400,612,901 341,122,991

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Amount in Taka
Notes Particulars July 01, 2019 to July 01, 2018 to
June 30, 2020 June 30, 2019
39.01 The details of current tax calculation are given below:
Profit before tax as per income statement 856,259,750 1,343,583,520
Add: Tax effect of expenses that are not deductible for tax purposes 1,321,814,918 1,328,586,952
Less: Tax effect of expenses that are deductible for tax purposes (2,338,561,378) (2,314,064,616)
(160,486,710) 358,105,856
Current Tax (at 25%) 25% 89,526,464
Current tax expenses - 89,526,464

Minimum Tax 170,584,141 36,816,620

Tax expenses 170,584,141 89,526,464
40.00 Earning Per Share (EPS)
40.01 Earning Per Share shown as below:
Earning attributable to ordinary Shareholders (Tk) 455,646,848 1,074,800,552
Weighted number of shares outstanding 397,569,804 397,569,804
Basic Earning Per Share 1.15 2.70
EPS have been decreased significantly compared to last year due to increase in current tax expenses and
increase in employee expenses.
40.02 Diluted Earning per share
No diluted earning per share is required to be calculated for the year as there was no potentially dilutive
ordinary shares during the year.
41.00 Adjustment related to previous year
Tranning Exp., PSI Exp. TDS Honorarium, Service
charge RDA Building, Recruitment Exp.Adv. Exp.
Outstanding to DPDC. Auction material Not provide by DESCO. - -
- (1,190,137)
- -
Total: - (1,190,137)
41.01 Prior year Tax
Provision for Income Tax For FY -2011-12, 12-13, 13-14,2014-15 - 100,159,079
- 100,159,079
42.00 Subsequent Events-Disclosures Under IAS 10 “Events After The Balance Sheet Date"
42.01 Subsequent to the repoting date, June 30, 2019, the Board of Directors in their meeting held on October 22,
2020 recommended 10% cash dividend (Tk.1 per ordinary share of Tk.10 each held on record date)
amounting to Tk. 39,75,69,804 for the year ended June 30, 2020. The dividend proposal is subject to
shareholders' approval at the forthcoming 24th AGM.
42.02 Except the fact stated above, no circumstances have arisen since the Financial Position date which would
require adjustment to, or disclosure in, the financial statements or notes thereto.

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43.00 Related Party Transactions:
43.01 DESCO Purchased / Received energy and materials from the following related parties in the normal course
of business:
Name of Party Nature of Relation Nature of Transaction Amount in Taka
June 30, 2020 June 30, 2019
BPDB 67.63% Shareholding of DESCO Purchase of Energy 33,560,533,277 33,996,576,299
DPDC Common Director of DPDC & DESCO Consumer bill collection 5,748,822 4,364,623
Total 33,566,282,099 34,000,940,922

43.02 DESCO has following outstanding balances with the related parties:

Name of Amount in Taka Amount in Taka

Party June 30, 2020 June 30, 2019
Receivable Payable Receivable Payable
BPDB 57,462,286 5,981,641,914 58,269,111 6,889,161,414
DPDC 308,814,859 127,795,645 60,270,323 94,526,846
Total 366,277,145 6,109,437,559 118,539,434 6,983,688,260
43.03 Key Management Personnel:

Amount in Taka
June 30, 2020 June 30, 2019
Director's Fees 3,056,667 2,799,950
Cash/Stock Dividend - -
44.00 Contingent Liabilities:
44.01 As the value of assets taken over from DESA in the Gulshan and Tongi areas have been shown at estimated
value, the Company may have to incurred additional cost after finalization of the value of the assets.
44.02 An aggregate amount of Tk. 101,547,035.00 claimed by BPDB as shown below is disputed by the Company.

Particulars 2019-2020
Arrear Energy bill (November'05 to June 2020) 15,248,179
Arrear Surcharge (Up to June 2020) 52,190,960
PFC Charge (Up to June 2020) 34,107,896
Total 101,547,035
45.00 Credit Facility Availed:
45.01 No credit facility existed under any contract as on June 30, 2020 other than trade credit available in the
ordinary course of business.
46.00 Capital Commitment:
46.01 The Company has entered into various contracts for construction works, sub-stations, land development ,
installation, renovation dismantling O/H and U/G cables, etc. amounting to Tk 18,882.08 million , works of
which will be started in the next financial year.

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Notes Particulars 2019-2020 2018-2019

47.00 Employees' Salary: No. of employees No. of employees
a) Employment throughout the year in receipt of
remuneration aggregating Tk 36,000 or more per annum. 1,823 1,514
b) Employment for a part of the year and in receipt of remuneration
aggregating Tk 3,000 or less per month. Nil Nil
1,823 1514
48.00 Net Asset Value Per Share (NAV):
Share holders equity 18,589,300,583 18,378,131,699
No. of Share outstanding 397,569,804 397,569,804
Net Asset Value Per Share (NAV) 46.76 46.23
49.00 Net Operating Cash Flows Per Share (NOCFPS)
Net cash generated from operating activities 4,413,761,939 2,543,661,326
No. of Share outstanding 397,569,804 397,569,804
Net Operating Cash Flows Per Share 11.10 6.40

The operating cash flow increased in the FY 2019-20 by Tk.4.56 due to encashment of FDR
50.00 Reconciliation of Net Income With Cash Flows from Operating Activities:

Amount in Taka
2019-2020 2018-2019
Profit before income tax 856,259,750 1,343,583,520
Depreciation charged 1,291,470,864 1,308,185,090
Exchange Fluctuation Gain/ (Loss) 91,206,250 155,303,224
Provision for bad debt 4,280,828 (506,583)
Investment in FDR 2,762,368,237 (1,674,666,916)
(Increase)/Decrease in Account Receivables (1,257,651,960) (278,276,323)
(Increase)/Decrease in Advances, Deposits and Pre-payments (526,745,701) (10,362,394)
Advance Income Tax 1,341,529 47,509,031
Increase/(Decrease) in Accounts Payable (918,326,081) 998,606,297
Creditors for Goods/Works 965,293,867 (129,852,512)
Creditors for Expenses 392,903,540 243,438,151
Accrued interest 751,360,816 540,700,740
Cash Generated from Operations 4,413,761,939 2,543,661,326
Net cash generated from operating activities 4,413,761,939 2,543,661,326

Company Secretary Executive Director (F&A) Director Managing Director Chairman

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51.00 Financial risk management (IFRS 7)

51.01 Introduction
The Company’s activities expose it to a variety of financial risks: credit risk, market risk (including
interest rate risk and foreign currency risk), and liquidity risk. The Company’s risk management
focuses on the unpredictability of financial markets and seeks to minimize potential adverse
effects on the Company’s financial performance. The Company uses derivative financial
instruments to economically hedge certain risk exposures.
Financial risk management is carried out by a central treasury department (Company Treasury)
under policies approved by the Board of Directors (Treasury Policy). Company Treasury identifies,
evaluates, and hedges financial risks in close co-operation with the Company’s operating units.
The ‘Treasury Policy’ provides principles for specific areas, such as credit risk, interest rate risk,
foreign currency risk, use of derivative financial instruments, and investment of excess liquidity.
This note presents information about the Company’s exposure to each of the risks arising from
financial instruments and the Company’s objectives, policies, and processes for measuring and
managing risk. Further quantitative disclosures are included throughout these consolidated
financial statements.
51.02 Carrying amounts of financial instruments by category
The following table shows the carrying amounts of financial instruments by category at the end of June:

Maturity analysis
Particulars Current >30 days >90 days >1 year Total
Loans and receivables:
Cash and cash equivalents 5,572,469,864 - - - 5,572,469,864

Accounts Receivable 5,386,870,146 - - - 5,386,870,146

Balance at June 30, 2020 10,959,340,009 - - - 10,959,340,009

Financial liabilities measured at amortized cost:

Bank Loan 1,820,995,013 - - - 1,820,995,013

Sundry Creditors 1,841,122,307 - - - 1,841,122,307

Balance at June 30, 2020 3,662,117,320 - - - 3,662,117,320

51.03 Credit risks:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to financial
instruments fails to meet its contractual obligations, and arises principally from cash and cash
equivalents, time deposits, and trade accounts receivable.
The credit risk with Accounts Receivable (see note 06) is limited, as the Company has numerous
clients located in various geographical regions. The Company’s exposure to credit risk is
influenced mainly by the individual characteristics of each customer. For risk control, the
customers are companied as follows (risk companies): governmental organizations, listed public
limited companies, and other customers. Credit limits are established for each customer, whereby
the credit limit represents the maximum open amount without requiring payments in advance or
letters of credit; these limits are reviewed regularly (credit check).

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The maximum exposure to credit risk is represented by the carrying amount of each financial
asset, including derivative financial instruments, in the Statement of Financial Position. There are
no commitments that could increase this exposure to more than the carrying amounts.

51.04 Market risks

Market risk is the risk that changes in market prices, such as interest rates, foreign exchange
rates, and other prices will affect the Company’s result or the value of its holdings of financial
instruments. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters while optimizing the return on risk.
The market risk with exchange fluctuation gain/(loss) (see note 35) is limited, as this occurred
only from foreign loan.
51.05 Interest rate risk
At the reporting date, the Company had the following interest-bearing financial instruments:
cash and cash equivalents, time deposits, rent deposits, and bank liabilities. All cash and cash
equivalents mature or reprise in the short-term, no longer than three months.
Borrowings mainly bear interest at fixed rates. Cash and cash equivalents and borrowings issued
at variable rates expose the Company to cash flow interest rate risk.
The Company does not account for any fixed-rate borrowings at fair value through profit or loss.
Therefore a change in interest rates at the reporting date would not affect profit or loss.
The Company Treasury manages the interest rate risk to reduce the volatility of the financial
result as a consequence of interest rate movements. For the decision whether new borrowings
shall be arranged at a variable or fixed interest rate, the Company Treasury focuses on an
internal long-term benchmark interest rate and considers the amount of cash and cash
equivalents held at a variable interest rate. Currently, the interest rate exposure is not hedged.
51.06 Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as
they fall due. Company Treasury manages the Company’s liquidity to ensure sufficient liquidity to
meet all liabilities when due, under both normal and stressed conditions, without facing
unacceptable losses or risking damage to the Company’s reputation.
Excess liquidity can be invested in instruments such as time deposits, government, and corporate
bonds, shares of publicly listed companies, and capital protected instruments.
The following are the contractual maturities of financial liabilities, including interest payments:

BDT Carrying Contractual Between 1 Between 91 Between 1 Over 2 years

amount cash flow and 90 days and 360 days and 2 days
Non-derivative financial liabilities
Bank Loan - - - - - 24,332,690,791
Sundry Creditors - - - 6,383,646,601 - -
Balance at June 30, 2020 - - - 6,383,646,601 - 24,332,690,791

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Dhaka Electric Supply Company Ltd.(DESCO)
Schedule of Property, Plant & Equipment
As at June 30, 2020 Annexure-A
Cost Depreciation
Written down
SL Balance Total Balance Total
Category of Assets Addition Rate Charged value as
No. as on Adjustment (1) as on as on Adjustment as on
during the Year during the year on 30-06-20
01-07-19 30-06-20 01-07-19 30-06-20

1 Land 2,766,641,031 3,614,263 - 2,770,255,294 - - - - - 2,770,255,294

ANNUAL REPORT 2020

2 Building 962,673,348 4,800,043 - 967,473,391 2.50% 146,878,554 25,451,619 - 172,330,173 795,143,218

3 Motor Vehicles 403,542,297 5,006,200 - 408,548,497 15% 277,867,223 37,646,324 - 315,513,547 93,034,950

4 Furniture & Fixture 64,935,559 5,130,323 - 70,065,882 10% 44,282,720 4,251,861 - 48,534,581 21,531,301

5 Office Equipment 314,453,190 17,267,314 (617,990) 331,102,514 15%-20% 250,181,226 23,827,262 (364,294) 273,644,194 57,458,320

6 Distribution Equipment 9,695,783,978 1,921,549,382 - 11,617,333,360 3%-10% 3,299,134,839 534,499,213 - 3,833,634,052 7,783,699,308

7 Distribution Line 17,475,734,879 514,972,521 - 17,990,707,400 3%-10% 6,750,888,757 639,033,940 - 7,389,922,697 10,600,784,703

Sub Total 31,683,764,282 2,472,340,046 (617,990) 34,155,486,338 10,769,233,319 1,264,710,219 (364,294) 12,033,579,244 22,121,907,094

1 Right-of-use assets - 35,080,773 - 35,080,773 - 6,286,533 - 6,286,533 28,794,239

Sub Total - 35,080,773 - 35,080,773 - 6,286,533 - 6,286,533 28,794,239

Schedule of Intangible Assets

As at June 30, 2020
Cost Amortization
Written down
SL Balance Total Balance Total
Category of Assets Addition Rate Charged value as
No. as on Adjustment as on as on Adjustment as on
during the Year during the year on 30-06-20
01-07-19 30-06-20 01-07-19 30-06-20
Software & Software
1 140,092,856 3,158,512 - 143,251,368 15% 29,543,158 20,474,114 - 50,017,272 93,234,096
development
Total 140,092,856 3,158,512 - 143,251,368 29,543,158 20,474,114 - 50,017,272 93,234,096

Grand Total 31,823,857,138 2,510,579,331 (617,990) 34,333,818,479 - 10,798,776,477 1,291,470,866 (364,294) 12,089,883,049 22,243,935,429
474,353,882 1,285,184,333
Allocation of Deprciation:
Depreciation ( Direct) 1,198,984,771
Depreciation ( Indirect) 92,486,093
1,291,470,864

Notes:
1) Building includes Office Building, Store Godown Sheds and Boundary Wall
2) Addition to Motor Vehicle Includes 01 nos motor cycle and 01 nos Pickup
3) Office Equipment comprise Communication Equipment , Computer & Peripherals , Electric and Store Equipment etc
 Dhaka Electric Supply Company Ltd. (DESCO)
For the year ended June 30, 2020
Depreciation Schedule as per ITO (Para-3 & Para-5 of the Third Schedule)
Annexure-B
Sl. Written down Addition Depreciation Permanent Written down
Adjustment/ Total as on Total during
No. Particulars value as on during the Initial Normal Adjustment Difference of value as on
Disposal 30-06-19 the year
01-07-19 year Rate Depreciation Rate Depreciation vehicle 30-06-19
A B C D E F G H=(D*G) I J=(F*I) K=(H+J) L=(F-K)
Land and Land
1 2,767,877,994 3,614,263 2,771,492,257 0% - - - - - - 2,771,492,257
Development
Building Administrative
2 511,884,519 4,800,043 - 516,684,562 10% 480,004 10% 51,668,456 - 52,148,461 - 464,536,102
& Support Building

Distribution Line &

3 5,712,358,528 2,436,521,903 - 8,148,880,431 25% 609,130,476 20% 1,629,776,086 - 2,238,906,562 - 5,909,973,869
Equipment
4 Motor Vehicles 116,067,221 2,659,200 - 118,726,421 0% - 20% 23,745,284 - 23,745,284 2,347,000 94,981,137

5 Furniture & Fixture 29,279,754 5,130,323 - 34,410,077 0% - 10% 3,441,008 - 3,441,008 - 30,969,069

6 Office Equipments 135,360,473 20,425,826 (617,990) 155,168,309 25% 5,106,457 10% 15,516,831 (364,294) 20,258,993 - 134,909,316

7 Store Godown Shed 35,033 - - 35,033 0% - 20% 7,007 - 7,007 - 28,026

8 Store Equipment 270,317 - - 270,317 0% - 20% 54,063 - 54,063 - 216,254

Total 9,273,133,839 2,473,151,558 (617,990) 11,745,667,407 614,716,937 1,724,208,735 (364,294) 2,338,561,378 2,347,000 9,407,106,029

Initial Deprection 614,716,937

Normal Deprecition 1,724,208,735
Total Tax Deprection 2,338,925,672

129
ANNUAL REPORT 2020
ANNUAL REPORT 2020

130
 ANNUAL REPORT 2020
Corporate Governance Compliance Report of DESCO
Status of compliance with the conditions imposed by the Commission’s Notification No. SEC/C-
MRRCD/2006-158/207/Admin/80, Dated 3 June 2018 issued under section 2CC of the Securities
and Exchange Ordinance, 1969:
Compliance Status (Put “√” in
Condition Title the appropriate column) Remarks (If any)
No.
Complied Not Complied
The total number of members of a company’s Board of Directors There are 12 directors in the
1(1) (hereinafter referred to as “Board”) shall not be less than 5 (five) and Board.
more than 20 (twenty).
At least one-fifth (1/5) of the total number of directors in the company’s
Board shall be independent directors; any fraction shall be considered There are 3 Independent
1(2)(a)
to the next integer or whole number for calculating number of Directors in the Board.
independent director(s);
who either does not hold any share in the company or holds less than A s confirmed by a
1(2)(b)(i)
one percent (1%) shares of the total paid -up shares of the company; representation.
who is not a sponsor of the company or is not connected with the
company’s any sponsor or director or nominated director or shareholder
of the company or any of its associates, sister concerns, subsidiaries and
parents or holding entities who holds one percent (1%) or more shares
1(2)(b)(ii) of the total paid-up shares of the company on the basis of family - Do -
relationship and his or her family members also shall not hold above
mentioned shares in the company: Provided that spo use, son, daughter,
father, mother, brother, sister, son -in-law and daughter-in-law shall be
considered as family members;
who has not been an executive of the company in immediately
1(2)(b)(iii) - Do -
preceding 2 (two) financial years;
who does not have any other relationship, whether pecuniary or
1(2 )(b)(iv) - Do -
otherwise, with the company or its subsidiary or associated companies;
who is not a member or TREC (Trading Right Entitlement Certificate)
1(2)(b)(v) - Do -
holder, director or off icer of any stock exchange;
who is not a shareholder, director excepting independent director or
1(2)(b)(vi) officer of any member or TREC holder of stock exchange or an - Do -
intermediary of the capital market;
who is not a partner or an executive or was not a partner or an executive
during the preceding 3 (three) years of the concerned company’s
1(2)(b)(vii) statutory audit firm or audit firm engaged in internal audit services or - Do -
audit firm conducting special audit or professional certifyi ng
compliance of this Code;
1(2)(b)(viii) who is not independent director in more than 5 (five) listed companies; - Do -
who has not been convicted by a court of competent jurisdiction as a
1(2)(b)(ix) defaulter in payment of any loan or any advance to a bank or a Non - - Do -
Bank Financial Institution (NBFI); and
1(2)(b)(x) who has not been convicted for a criminal offence involving moral turpitude; - Do -
The independent director(s) shall be appointed by the Board and
1(2)(c) Approved at AGM.
approved by the shareholders in the Annual General Meeting (AGM);
The post of independent director(s) cannot remain vacant for more than No such case during the
1(2)(d)
90 (ninety) days; and year.
The tenure of office of an independent director shall be for a period of The IDs are on their regular
1(2)(e)
3 (three) years, which may be extended for 1 (one) tenure only: term in office.
Independent director shall be a knowledgeable individual with integrity
who is able to ensure compliance with financial law s, regulatory
1(3)(a) Confirmed by declaration
requirements and corporate laws and can make meaningful contribution
to the business;
Business Leader who is or was a promoter or director of an unlisted
company having minimum paid -up capital of Tk. 10 0.00 million or any
1(3)(b)(i) - Do -
listed company or a member of any national or international chamber
of commerce or business association; or
Corporate Leader who is or was a top level executive not lower than
Chief Executive Officer or Managing D irector or Deputy Managing
Director or Chief Financial Officer or Head of Finance or Accounts or
1(3)(b)(ii) Company Secretary or Head of Internal Audit and Compliance or Head - Do -
of Legal Service or a candidate with equivalent position of an unlisted
company having minim um paid-up capital of Tk. 100.00 million or of
a listed company;

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ANNUAL REPORT 2020
Compliance Status (Put “√” in
Condition Title the appropriate column) Remarks (If any)
No.
Complied Not Complied
Former official of government or statutory or autonomous or regulatory
th
1(3)(b)(iii) body in the position not below 5 Grade of the national pay scale, who - Do -
has at least educational background of bachelor degree in economics or
commerce or busine ss or Law; or

1(3)(b)(iv) University Teacher who has educational background in Economics or - Do -

Commerce or Business Studies or Law; or
Professional who is or was an advocate practicing at least in the High
Court Division of Ba ngladesh Supreme Court or a Chartered
Accountant or Cost and Management Accountant or Chartered
1(3)(b)(v) Financial Analyst or Chartered Certified Accountant or Certified Public - Do -
Accountant or Chartered Management Accountant or Chartered
Secretary or equivalent quali fication;
The independent director shall have at least 10 (ten) years of
1(3)(c) - Do -
experiences in any field mentioned in clause (b);
In special cases, the above qualifications or experiences may be relaxed
1(3)(d) subject to prior approval of the Commission. No such case as yet.

The positions of the Chairperson of the Board and the Managing

1(4)(a) Director (MD) and/or Chief Executive Officer (CEO) of the company
shall be filled by different individuals;
The Managing Director (MD) and/or Chief Executive Officer (CEO) of
1(4)(b) a listed company shall not hold the same position in another listed
company;
The Chairperson of the Board shall be elected from among the non -
1(4)(c)
executive directors of the company;
The Board sh all clearly define respective roles and responsibilities of
1(4)(d) the Chairperson and the Managing Director and/or Chief Executive
Officer;
In the absence of the Chairperson of the Board, the remaining members
may elect one of themselves from nonexe cutive directors as
1(4)(e)
Chairperson for that particular Board’s meeting; the reason of absence
of the regular Chairperson shall be duly recorded in the minutes.
1(5)(i) An industry outlook and possible future developments in the industry; As discussed in the
Directors' Report.
1(5)(ii) The segment-wise or product -wise performance; - Do -
Risks and concerns including internal and external risk factors, threat
1(5)(iii) - Do -
to sustainability and negative impact on environment, if any;
A discussion on Cost of Goods sold, Gross Profit Margin and Net Profit
1(5)(iv) - Do -
Margin, where applicable;
A discussion on continuity of any extraordinary activities and their
1(5)(v) - Do -
implications (gain or loss);
A detailed discussion on related party transactions along with a
1(5)(vi) statement showing amount, nature of related party, nature of - Do -
transactions and basis of transactions of all related party transactions;
A statement of utilization of proceeds raised through pu blic issues,
1(5)(vii) - Do -
rights issues and/or any other instruments;
An explanation if the financial results deteriorate after the company
1(5)(viii) goes for Initial Public Offering (IPO), Repeat Public Offering (RPO), No such case as yet.
Rights Share Offer, Direct Listing, e tc.;
An explanation on any significant variance that occurs between
1(5)(ix)
Quarterly Financial performances and Annual Financial Statements;
A statement of remuneration paid to the directors including independent
1(5)(x)
directors;
A statement that the financial statements prepared by the management
1(5)(xi) of the issuer company present fairly its state of affairs, the result of its
operations, cash flows and changes in equity;
A statement that proper books of account of the issuer company have
1(5)(xii) been maintained;
A statement that appropriate accounting policies have been consistently
1(5)(xiii) applied in preparation of the financial statements and that the accounting
estimates are based on reasonable an d prudent judgment;
A statement that International Accounting Standards (IAS) or
International Financial Reporting Standards (IFRS), as applicable in
1(5)(xiv)
Bangladesh, have been followed in preparation of the financial statements
and any departure there from has been adequately disclosed;
A statement that the system of internal control is sound in design and
1(5)(xv)
has been effectively implemented and monitored;
A statement that minority shareholders have been protected from
1(5)(xvi) abusive actions by, or in the interest of, controlling shareholders acting
either directly or indirectly and have effective means of redress;
A statement that there is no significant doubt upon the issuer company’s
ability to continue as a going concern, if the issuer company is not No doubt to continue as
1(5)(xvii)
considered to be a going concern, the fact along with reasons there of going concern
shall be disclosed;
An explanation that significant deviations from the last year’s operating
1(5)(xviii) results of the issuer company shall be highlighted and the reasons
thereof shall be explained;
A statement where key operating and financial data of at least preceding
1(5)(xix)
5 (five) years shall be summarized;

132
 ANNUAL REPORT 2020
Compliance Status (Put “√” in
Condition Title the appropriate column) Remarks (If any)
No.
Complied Not Complied
An explanation on the reasons if the issuer company has not declared
1(5)(xx) No such case as yet.
dividend (cash or stock) for the year;
1(5)(xxi) has been or shall be declared as interim dividend; - Do -
The total number of Board meetings held during the year and
1(5)(xxii) attendance by each director;
Parent or Subsidiary or Associated Companies and other related parties
1(5)(xxiii)(a)
(name-wise details);
Directors, Chief Executive Officer, Company Secretary, Chief
1(5)(xxiii)(b) Financial Officer, Head of Internal Audit and Compliance and the ir
spouses and minor children (name -wise details);
1(5)(xxiii)(c) Executives; and
Shareholders holding ten percent (10%) or more voting interest in the
1(5)(xxiii)(d) company (name -wise details);
1(5)(xxiv)(a) a brief resume of the director;
1(5)(xxiv)(b) nature of his or her expertise in specific functional areas; and
names of companies in which the person also holds the directorship and
1(5)(xxiv)(c) the membership of committees of the Board;

1(5)(xxv)(a) accounting policies and estimation for preparation of financial

statements;
changes in accounting policies and estimation, if any, clearly describing
1(5)(xxv)(b) the effect on financial performance or results and financial position as
well as cash flows in absolute figu re for such changes;
comparative analysis (including effects of inflation) of financial
performance or results and financial position as well as cash flows for
1(5)(xxv)(c) current financial year with immediate preceding five years explaining
reasons thereof;
compare such financial performance or results and financial position as
1(5)(xxv)(d) well as cash flows with the peer industry scenario;
briefly explain the financial and economic scenario of the country and
1(5)(xxv)(e) the globe;
risks and concerns issues related to the financial statements, explaining
1(5)(xxv)(f) such risk and concerns mitigation plan of the company; and
future plan or projection or forecast for company’s operation,
1(5)(xxv)(g) performance and financial pos ition, with justification thereof, i.e.,
actual position shall be explained to the shareholders in the next AGM;
Declaration or certification by the CEO and the CFO to the Board as
1(5)(xxvi) required under condition No. 3(3) shall be disclosed as per Annexure - As given in the Report.
A ; and
The report as well as certificate regarding compliance of conditions of
1(5)(xxvii) this Code as required under condition No. 9 shall be disclosed as per As given in the Report.
Annexure -B and Annexure -C .
The company shall conduct its Board meetings and record the minutes
of the meetings as well as keep required books and records in line with
the provisions of the relevant Bangladesh Secretarial Standards (BSS) As confirmed by a
1( 6)
as adopted by the Institute of Chartered Secretaries of Bangladesh representation.
(ICSB) in so far as those standards are not inconsistent with any
condition of this Code.
The Board shall lay down a code of conduct, based on the
recommendation of the Nomination and Remuneration Committee
1(7)(a)
(NRC) at condition No. 6, for the Chairperson of the Board, other board
members and Chief Exe cutive Officer of the company;
The code of conduct as determined by the NRC shall be posted on the
website of the company including, among others, prudent conduct and
1(7)(b) behavior; confidentiality; conflict of interest; compliance with laws,
rules and regulations; prohibition of insider trading; relationship with
environment, employees, customers and suppliers; and independency.
Provisions relating to the composition of the Board of the holding
company shall be made applicable to the comp osition of the Board of
2(a) No such case as yet.
the subsidiary company;
At least 1 (one) independent director on the Board of the holding
2(b) - Do -
company shall be a director on the Board of the subsidiary company;
The minutes of the Board meeting of the subsidiary company shall be
2(c) placed for review at the following Board meeting of the holding - Do -
company;
The minutes of the respective Board meeting of the holding company
2(d) shall state that they have reviewed the affairs of the subsidiary company - Do -
also;
The Audit Committee of the holding company shall also review the
2(e) financial statements, in particular the investments made by the - Do -
subsidiary company.
The Board shall appoint a Managing Director (MD) or Chief Executive Mentioned in the Directors'
3(1)(a) Officer (CEO), a Company Secretary (CS), a Chief Financial Officer Report
(CFO) and a Head of Internal Audit and Compliance (HIAC);
The positions of the Managing Director (MD) or Chief Executive
Officer (CEO), Company Secretary (CS), Chief Financial Officer
3(1)(b) (CFO) and Head of Internal Audit and Compliance (HIAC) shall be
filled by different individuals;

133
ANNUAL REPORT 2020
Compliance Status (Put “√” in
Condition Title the appropriate column) Remarks (If any)
No.
Complied Not Complied
The MD or CEO, CS, CFO and HIAC of a listed company shall not
3(1)(c)
hold any executive position in any other company at the same time;
The Board shall clearly define respective roles, responsibilities and
3(1)(d)
duties of the CFO , the HIAC and the CS;
The MD or CEO, CS, CFO and HIAC shall not be removed from their
3(1)(e) position without approval of the Board as well as immediate
dissemination to the Commission and stock exchange(s).
The MD or CEO, CS, CFO and HIAC of the company shall attend the
3(2)
meetings of the Board:
these statements do not contain any materially untrue statement or omit
3(3)(a)(i) any material fact or contain statements that might be misleading; and
these statements togetherpresent a true and fair view of the company’s
3(3)(a)(ii) affairs and are in compliance with existing accounting standards and
applicable laws;
The MD or CEO and CFO shall also certify that there are, to the best of
knowledge and belief, no transactions entered into by the company
3(3)(b)
during the year which are fraudulent, illegal or in violation of the code
of conduct for the company’s Board or its members;
3(3)(c) The certification of the MD or CEO and CFO shall be disclosed in the
Annual Report.
4(i) Audit Committee; and
4(ii) Nomination and Remuneration Committee.
The company shall have an Audit Committee as a subcommittee of the Mentioned in the Directors'
5(1)(a)
Board; Report.
The Audit Committee shall assist the Board in ensuring that the financial Functions of Audit
5(1)(b) statements reflect true and fair view of the state of affairs of the company Committee given in the
and in ensuring a good monitoring system within the business; Directors' Report.
The Audit Commit tee shall be responsible to the Board; the duties of
5(1)(c) - Do -
the Audit Committee shall be clearly set forth in writing.
5(2)(a) The Audit Committee shall be composed of at least 3 (three) members; 3 members
The Board shall appoint members of the Audit Committee who shall be
5(2)(b) non-executive directors of the company excepting Chairperson of the
Board and shall include at least 1 (one) independent director;
All members of the audit committee should be “financially literate” and
5(2)(c) at least 1 (one) member shall have accounting or related financial
management background and 10 (ten) years of such experience;
When the term of service of any Committee member expires or there is
any circumstance causing any Committee member to be unable to hold
office before expiration of the term of service, thus making the number
of the Committee members to be lower than the prescribed number of
5(2)(d) 3 (three) persons, the Board shall appoint the new Committee member No such case as yet.
to fill up the vacancy immediately or not later than 1 (one) month from
the date of vacancy in the Committee to ensure continuity of the
performance of work of the Audit Committee;
5(2)(e) The company secretary shall act as the secretary of the Committee;

5(2)( f) The quorum of the Audit Committee meeting shall not constitute
without at least 1 (one) independent director.
The Board shall select 1 (one) member of the Audit Committee to be
The AC Chairman is an
5(3)(a) Chairperson of the Audit Committee, who shall be an independent
Independent Director.
director;
In the absence of the Chairperson of the Audit Committee, the
remaining members may elect one of themselves as Chairperson for that
particular meeting, in that case there shall be no proble m of constituting
5(3)(b) a quorum as required under condition No. 5(4)(b) and the reason of No such case as yet.
absence of the regular Chairperson shall be duly recorded in the
minutes.
Chairperson of the Audit Committee shall remain present in the An nual
5(3)(c)
General Meeting (AGM):
The Audit Committee shall conduct at least its four meetings in a Discussed in the Directors
5(4)(a) financial year: Report.

5(4)(b) The quorum of the meeting of the Audit Committee shall be constituted
in presence of either two members or two-third of the members of the
5(5)(a) Oversee the financial reporting process;
5(5)(b) monitor choice of accounting policies and principles;
monitor Internal Audit and Compliance process to ensure that it is
5(5)(c) adequately resourced, including approval of the Internal Audit and
Compliance Plan and review of the Internal Audit and Compliance Report;
5(5)(d) oversee hiring and performance of external auditors;
hold meeting with the external or statutory auditors for review of the
5(5)(e) annual financial statements before submission to the Board for approval
or adoption;
review along with the management, the annual financial statements
5(5)(f)
before submission to the Board for approval;
review along with the management, the quarterly and half yearly
5(5)(g)
financial statements before submission to the Board for approval;
5(5)(h) review the adequacy of internal audit function;
review the Management’s Discussion and Analysis before disclosing in
5(5)(i)
the Annual Report;

134
 ANNUAL REPORT 2020
Compliance Status (Put “√” in
Condition Title the appropriate column) Remarks (If any)
No.
Complied Not Complied
5(5)(j)
management;
review Management Letters or Letter of Internal Control weakness
5(5)(k)
issued by statutory auditors;

5(5)(l) level of expertise deployed and time required for effective audit and
evaluate the performance of external auditors; and
oversee whether the proceeds raised through Initial Public Offering
(IPO) or Repeat Public Offering (RPO) or Rights Share Offer have been
5(5)(m) No such case as yet.
utilized as per the purposes stated in relevant offer document or
prospectus approved by the Commission:
5(6)(a)(i) The Audit Committee shall report on its activities to the Board.
5(6)(a)(ii)(a) report on conflicts of interests; No such case as yet.
suspected or presumed fraud or irregularity or m aterial defect identified
5(6)(a)(ii)(b) in the internal audit and compliance process or in the financial - Do -
statements;
suspected infringement of laws, regulatory compliances including
5(6)(a)(ii)(c) - Do -
securities related laws, rules and regulations; and
any other matter which the Audit Committee deems necessary shall be
5(6)(a)(ii)(d) - Do -
disclosed to the Board immediately;
If the Audit Committee has reported to the Board about anything which
has material impact on the financial condition and results of operation
and has discussed with the Board and the management that any
rectification is necessary and if the Audit Committee finds that such
5(6)(b) - Do -
rectification has been unreasonably ignored, the Audit Committee shall
report such finding to the Commi ssion, upon reporting of such matters
to the Board for three times or completion of a period of 6 (six) months
from the date of first reporting to the Board, whichever is earlier.
Report on activities carried out by the Audit Committee, incl uding any
5(7) report made to the Board under condition No. 5(6)(a)(ii) above during Given in the Directors'
the year, shall be signed by the Chairperson of the Audit Committee Report
and disclosed in the annual report of the issuer company.
The com pany shall have a Nomination and Remuneration Committee
6(1)(a)
(NRC) as a sub -committee of the Board;
The NRC shall assist the Board in formulation of the nomination
criteria or policy for determining qualifications, positive attributes,
6(1)(b) experiences and independence of directors and top level executive as
well as a policy for formal process of considering remuneration of
directors, top level executive;
The Terms of Reference (ToR) of the NRC shall be clearly set forth in
6(1)(c)
writing covering the areas stated at the condition No. 6(5)(b).
The Committee shall comprise of at least three members including an
6(2)(a)
independent director;
6(2)(b) All members of the Committee shall be non -executive directors;

6(2)(c) Members of the Co

Board;
6(2)(d) The Board shall have authority to remove and appoint any member of
the Committee;
In case of death, resignation, disqualification, or removal of any
6(2)(e) member of the Committee or in any other cases of vacancies, the board No such case as yet.
shall fill the vacancy within 180 (one hundred eighty) days of occurring
such vacancy in the Committee;
The Chairperson of the Committee may appoint or co -opt any external
expert and/or member(s) of staff to the Committee as advisor who shall
6(2)(f) be non-voting member, if the Chairperson feels that advice or No such case as y et.
suggestion from such external expert and/or member(s) of staff shall be
required or valuable for the Committee;
6(2)(g) The company secretary shall act as the secretary of the Committee;
The quorum of the NRC meeting shall not constitute without attendance
6(2)(h)
of at least an independent director;
No member of the NRC shall receive, either directly or indirectly, any
6(2)(i) remuneration for any advisory or consultancy role or otherwise, other
than Director’s fees or honorarium from the company.

6(3)(a) The Board shall select 1 (one) member of the NRC to be Chairperson
of the Committee, who shall be an independent director;
In the absence of the Chairperson of the NRC, the remaining members
may elect one of themselves as Chairperson for that particular meeting,
6(3)(b) No such case as yet.
the reason of absence of the regular Chairperson shall be duly recorded
in the minutes;
The Chairperson of the NRC shall attend the annual general meeting
6(3)(c)
(AGM) to answer the queries of the shareholders:
6(4)(a) The NRC shall conduct at least one meeting in a financial year;
The Chairperson of the NRC may convene any emergency meeting
6(4)(b)
upon request by any member of the NRC;
The quorum of the meeting of the NRC shall be constituted in presence
6(4)(c) of either two members or two third of the members of the Committee,
whichever is higher, where presence of an independent director is must
as required under condition No. 6(2)(h);

135
ANNUAL REPORT 2020
Compliance Status (Put “√” in
Condition Title the appropriate column) Remarks (If any)
No.
Complied Not Complied
The proceedings of each meeting of the NRC shall duly be recorded in
6(4)(d) the minutes and such minutes shall be confirmed in the next meeting o f
the NRC.
NRC shall be independent and responsible or accountable to the Board
6(5)(a)
and to the shareholders;
the level and composition of remuneration is reasonable and sufficient
6(5)(b)(i)(a) to attract, retain and motivate suitable directors to run the company
successfully;
the relationship of remuneration to performance is clear and meets
6(5)(b)(i)(b)
appropriate performance benchmarks; and
remuneration to directors, top level executive involves a balance
between fixed and incentive pay reflecting short and long -term
6(5)(b)(i)(c)
performance objectives appropriate to the working of the company and
its goals;
6(5)(b)(ii) devising a policy on Board’s diversity taking into consideration age,
gender, experience, ethnicity, educ ational background and nationality;
identifying persons who are qualified to become directors and who may
6(5)(b)(iii) be appointed in top level executive position in accordance with the
criteria laid down, and recommend their appointment and removal to
the Board;
formulating the criteria for evaluation of performance of independent
6(5)(b)(iv)
directors and the Board;
identifying the company’s needs for employees at different levels and
6(5)(b)(v) determine their selection, transfer or repla cement and promotion
criteria; and
developing, recommending and reviewing annually the company’s
6(5)(b)(vi)
human resources and training policies;
The company shall disclose the nomination and remuneration policy
6(5)(c) and the evaluation criteria and activities of NRC during the year at a
glance in its annual report.
As confirmed by a
7(1)(i) appraisal or valuation services or fairness opinions;
representation.
7(1)(ii) financial information systems design and implementation; - Do -
7(1)(iii) book -keeping or other services related to the accounting records or - Do -
financial statements;
7(1)(iv) broker -dealer services; - Do -
7(1)(v) actuarial services; - Do -
7(1)(vi) internal audit services or special audit services; - Do -
7(1)(vii) any service that the Audit Committee determines; - Do -
7(1)(viii) audit or certification services on compliance of corporate governance
- Do -
as required under condition No. 9(1); and
7(1)(ix) any other service that creates conflict of interest. - Do -
No partner or employees of the external audit firms shall possess any
share of the company they audit at least during the tenure of their audit
assignment of that company; his or her family members also shall not
7(2) - Do -
hold any shares in the said company:
Provided that spouse, son, daughter, father, mother, brother, sister, son -
in-law and daughter-in-law shall be considered as family members.
Representative of external or statutory auditors shall remain presen t in
7(3) the Shareholders’ Meeting (Annual General Meeting or Extraordinary
General Meeting) to answer the queries of the shareholders.
The company shall have an official website linked with the website of
8(1)
the stock exchange.
8(2) The company sh all keep the website functional from the date of listing.
The company shall make available the detailed disclosures on its
8(3) website as required under the listing regulations of the concerned stock
exchange(s).
The company shall obtain a certificate from a practicing Professional
Accountant or Secretary (Chartered Accountant or Cost and
9(1) Management Accountant or Chartered Secretary) other than its Given in the Annual
statutory auditors or audit firm on yearly basis regarding compliance of Report.
conditions of Corpora te Governance Code of the Commission and shall
such certificate shall be disclosed in the Annual Report.
The professional who will provide the certificate on compliance of this
9(2) Corporate Governance Code shall be appointed by the shareholders in
the annual general meeting.
The directors of the company shall state, in accordance with the Given in the Annual
9(3) Annexure -C attached, in the directors’ report whether the company has Report.
complied with these conditions or not.

136
 ANNUAL REPORT 2020
Tariff Rate
weBAviwm ¯§viK bs-28.01.0000.012.04.003.20.652 ZvwiLt 27 †deªæqvwi, 2020 Gi †cªw¶‡Z XvKv
B‡jw±«K mvcøvB †Kv¤úvwb wjwg‡UW (†Wm‡Kv) KZ©…K we`y¨‡Zi LyPiv g~j¨nvi wbgœiƒ‡c wba©vib Kiv n‡q‡Q hv gvP©,
2020 wej gvm n‡Z Kvh©Ki:
K) wbgœPvc (GjwU) 230/400 †fvë
we`y¨r mieivnt wbgœPvc Gwm wms‡Mj †dR 230 †fvë Ges wZb †dR 400 †fvë
wd«‡Kv‡qwÝt 50 mvB‡Kj/†m‡KÛ
Aby‡gvw`Z †jvWt wms‡Mj †dR 0-7.5 wK.I Ges wZb †dR 0-80 wK.I

µwgK MªvnK †kªYx cªwZ BDwbU wWgvÛ PvR©

bs we`y¨r g~j¨
1 †kªYx-GjwU G : AvevwmK
jvBd jvBb : 0-50 BDwbU 3.75
1. 1g avc : 0-75 BDwbU 4. 19
2. 2h avc : 76-200 BDwbU 5.72
3. 3q avc : 201-300 BDwbU 6.00 30.00
4. 4_© avc: 301-400 BDwbU 6.34
5. 5g avc: 401-600 BDwbU 9.94
6. 6ô avc: 600 BDwbU Gi AwaK 11.46
2 †kªYx GjwU-we : †mP/K…wlKv‡R e¨veüZ cv¤ú 4.16 30.00
3 †kªYx GjwU-wm 1: ÿz`ª wkí
d¬vU 8. 53
Ad cxK 7.68 30.00
wcK 10.24
4 †kªYx GjwU-wm 2: wbg©vY 12.00 100.00
5 †kªYx GjwU-wW 1: wk¶v, ag©xq I `vZe¨ cªwZôvb Ges nvmcvZvj 6.02 35.00
6 †kªYx GjwU-wW 2: iv¯Ívi evwZ I cvwbi cv¤ú 7.70 60.00
†kªYx GjwU-wW 3: e¨vUvwi PvwR©s †÷kb
d¬vU 7.64
7 Ad cxK 6.88 60.00
mycvi Ad-cxK 6.11
cxK 9.55
8 †kªYx GjwU-B : evwYwR¨K I Awdm
d¬vU 10.30
Ad cxK 9.27 60.00
cxK 12.36
9 †kªYx GjwU-wU: A¯’vqx 16.00 100.00

137
ANNUAL REPORT 2020
L) ga¨gPvc (GgwU) 11 †Kwf
we`y¨r mieivnt ga¨gPvc Gwm 11 †Kwf
wd«‡Kv‡qwÝt 50 mvB‡Kj/ †m‡KÛ
Aby‡gvw`Z †jvWt 50 wK.I. †_‡K Ab~aŸ© 5 †g.I.

µwgK MªvnK †kªYx cªwZ BDwbU wWgvÛ PvR©

bs we`y¨r g~j¨
1 †kªYx -GgwU 1 : AvevwmK
d¬vU 8.40
Ad-cxK 7.56 60.00
cxK 10.50
2 †kªYx -GgwU 2 : evwYwR¨K Ges Awdm
d¬vU 9.12
Ad-cxK 8.21 60.00
cxK 11.40
3 †kªYx -GgwU 3 : wkí
d¬vU 8.55
Ad-cxK 7.70 60.00
cxK 10.69
4 †kªYx -GgwU 4 : wbg©vY
d¬vU 11.46
Ad-cxK 10.31 100.00
cxK 14.33
5 †kªYx -GgwU 5 : mvaviY
d¬vU 8.45
Ad-cxK 7.61 60.00
cxK 10.56
6 †kªYx GgwU-6: A¯’vqx 15.00 100.00
GgwU -7: e¨vUvwi PvwR©s †÷kb
d¬vU 7.56
7 Ad cxK 6.80 60.00
mycvi Ad-cxK 6.05
cxK 9.45
GgwU-8: †mP/K…wlKv‡R e¨veüZ cv¤ú
d¬vU 5.00
8 Ad-cxK 4.50 60.00
cxK 6.25

138
 ANNUAL REPORT 2020
M) D”PPvc (GBPwU) 33 †Kwf
we`y¨r mieivnt D”PPvc Gwm 33 †Kwf
wd«‡Kv‡qwÝt 50 mvB‡Kj/†m‡KÛ
Aby‡gvw`Z †jvWt 5 †g.I. †_‡K Ab~aŸ© 30 †g.I.
(20 †g.I. Gi D‡aŸ© Aek¨B Wvej mvwK©U)
µwgK MªvnK †kªYx cªwZ BDwbU wWgvÛ PvR©
bs we`y¨r g~j¨
1 †kªYx-GBPwU 1 : mvaviY
d¬vU 8.41
Ad-cxK 7.57 60.00
cxK 10.51
2 †kªYx-GBPwU 2 : evwYwR¨K Ges Awdm
d¬vU 9.02
Ad-cxK 8.12 60.00
cxK 11.28
3 †kªYx-GBPwU 3 : wkí
d¬vU 8.45
Ad-cxK 7.61 60.00
cxK 10.56
4 †kªYx-GBPwU 4 : wbg©vY
d¬vU 10.60
Ad-cxK 9.54 60.00
cxK 13.25

N) AwZ D”PPvc (BGBPwU) 132 †Kwf Ges 230 †Kwf

we`y¨r mieivnt AwZ D”PPvc Gwm 132 †Kwf Ges 230 †Kwf
wd«‡Kv‡qwÝt 50 mvB‡Kj/†m‡KÛ
Aby‡gvw`Z †jvWt BGBPwU-1 : 20 †g.I. †_‡K Ab~aŸ© 140 †g.I. Ges BGBPwU-2 : 140 †g. I. Gi D‡aŸ©
µwgK MªvnK †kªYx cªwZ BDwbU wWgvÛ PvR©
bs we`y¨r g~j¨
1 †kªYx -BGBPwU 1 : mvaviY
d¬vU 8.36
Ad wcK 7.52 60.00
wcK 10.45
2 †kªYx- BGBPwU 2 : mvaviY
d¬vU 8.31
Ad wcK 7.48 60.00
wcK 10.39
139
ANNUAL REPORT 2020

140
 Registered Office:
22/B Faruk Sarani,
Dhaka Electric Supply Company Limited Nikunja-2, Khilkhet,
ISO 9001:2015 & 45001:2018 Certified Dhaka-1229

PROXY FORM

I/We...................................................................................................................of......................................................................................
being a member of Dhaka Electric Supply Company Ltd. (DESCO) herby appoint
Mr./Mrs./Miss…………………….……………..……………….……............................................................................................................................

Address………………….……………………...………………………………………………. as my/our proxy to vote for me/us on my/our

behalf at the 24th Annual General Meeting of the Company to be held on Saturday, 09 January, 2021 at
10 am and at any adjournment thereof.
As witness my / our hand this...........day of ………., 2020.

(Signature of the Shareholder) A fix (Signature of the Proxy)

BO ID NO: ........................................... Revenue BO ID (if any): ...............................................
Stamp of
Date: …………........................................ TK 20 Date: ……………………………..............................

Note: The proxy form should reach the Corporate Office of the Company not less than 48 hours before the
time fixed for the meeting i.e. not later than January 7, 2021 within office hours. The proxy form must
contain revenue stamp of TK 20 as per Stamp Act.

Signature Verified
Authorized Signature

Registered Office:
22/B Faruk Sarani,
Dhaka Electric Supply Company Limited Nikunja-2, Khilkhet,
ISO 9001:2015 & 45001:2018 Certified Dhaka-1229

ATTENDANCE SLIP
I hereby record my attendance at the 24th Annual General Meeting being held on Saturday, the January
09, 2021 at 10 am BDT at Digital Platform.

BO ID NO: …………………………………………………………….................................................................................................................................

Name of the Shareholder / Proxy…………………..................................................................................................................................

Signature…………………………………………………………….................................................................................................................................

Date: ……………………………………………………………………................................................................................................................................
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 ÒgywRe e‡l©
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Dhaka Electric Supply Company Limited
22/B, Faruk Sarani, Nikunja-2, Khilkhet, Dhaka-1229
ISO 9001:2015 & ISO 45001:2018 Certified
Hotline: 16120 Scan this QR Code to
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